Friday, August 24, 2012

Three 99-year sites up for sale, expected to yield 1,600 units


Business Times: Fri, Aug 24

THREE 99-year leasehold residential sites at New Upper Changi Road, Woodlands Avenue 6/Woodlands Drive 16, and Prince Charles Crescent, which are expected to yield about 1,600 housing units, were put up for sale by public tender yesterday.

The first parcel at New Upper Changi Road, which was launched for sale by the Urban Redevelopment Authority (URA), sits on a 343,170.4 sq ft plot, and has a maximum gross floor area (GFA) of about 549,077.3 sq ft. Allowable development includes condominium/flats, and is expected to yield some 540 units.

Credo Real Estate executive director Ong Teck Hui expects the site to command good interest.

"Those who failed to clinch the earlier site can have another go in tendering for this site. However, bidders for this site will be mindful of the time advantage that the earlier site has in launching the project," said Mr Ong, referring to the site at Tanah Merah Kechil which was awarded earlier this month, to Fragrance Group Ltd and World Class Land Pte Ltd, for $285.2 million ($676 psf ppr).

He expects the top bid for the subject site to come in at $630-$680 psf ppr, with eight to 12 parties vying for the site.

Eugene Lim, key executive officer at ERA Realty Network said he expects between eight and 10 bids, with the top bid coming in at about $650 psf ppr. Units in the project could eventually sell at $1,200-$1,300 psf because of its close proximity to Tanah Merah MRT and the upcoming Bedok Mall, he added.

"(The) subject site is twice the size of the site at Tanah Merah Kechil, this would serve to curb the number of bidders who are willing to undertake the project. First is due to financial constraint, the second would be the need for developers to finish selling all the dwelling units within a period of five years," said Mr Lim.

Png Poh Soon, head of research at Knight Frank Singapore noted that the site is conveniently located next to Tanah Merah MRT and is within close proximity to Changi Business Park and Changi Airport thus presenting investment potential.

That being said, developers might be cautious because of the expected completion from the two neighbouring GLS sites sold earlier this year, as well as from land Parcel B which will be made available on the Reserve List in December, said Mr Png.

He expects the winning bid to come in at $550-$580 psf ppr, with some five to seven bidders.

DWG's senior manager for training, research and consultancy, Lee Sze Teck, expects the top bid to be $650-$700 psf ppr, with a breakeven price of between $1,050 and $1,100 and selling price for finished units in the $1,300-$1,350 psf range.

"There is a commercial plot of land opposite the MRT station which could be developed into a retail mall if sold. This will increase the attractiveness of the area," said Mr Lee. "There could be pent-up demand from residents in the area. According to marketing agents for eCO, quite a fair bit of interest came from residents in the Bedok and Marine Parade areas."

The second parcel, a 99-year leasehold executive condominium (EC) site at Woodlands Avenue 6/Woodlands Drive 16, was launched for sale by the Housing Board (HDB). It has a site area of about 177,658.2 sq ft and has maximum GFA of 497,442.9 sq ft. It is expected to yield about 465 units.

According to Credo's Mr Ong, that Woodlands is a relatively under-supplied EC sub-market, with only one EC site launched and sold since 2010, should make the successful bidder for the site confident of demand from upgraders.

"We may expect four to seven bidders with the top bid coming in between $300-$330 psf ppr," said Mr Ong.

Knight Frank's Mr Png said he expects the top bid to be $300-$310 psf ppr; he expects completed units to sell between $740-$750 psf.

"We expect moderate interest for the site of three to five bidders, taking into consideration the ample land supply for ECs in H2 2012. There are six EC sites under the H2 2012 GLS Programme confirmed list."

DWG's Mr Lee estimates the top bid to be around $300-$350 psf ppr, which translates into a breakeven price of $600 to $650 psf and an estimated sale price of $680 and $730 psf.

According to SLP's executive director Nicholas Mak, the site could draw moderate level of interest given development restrictions on the site due to its proximity to the Sembawang Airbase, and its distance to the nearest MRT station. He expects three to seven bidders, with a top bid of $310-$335 psf ppr.

The last parcel, a 99-year leasehold reserve site at Prince Charles Crescent, was earlier triggered for sale on July 30 after a developer offered a bid of at least $390 million.

Consultants said they expect bids for the 2.38-hectare site, which has a maximum permissible GFA of some 537,656.8 sq ft, to come in the range of $760-$850 psf ppr.

Tender for the residential sites at Prince Charles Crescent, Woodlands Avenue 6 /Woodlands Drive 16 and New Upper Changi Road (Parcel A) and will close at 12 noon on Sept 20, Oct 9 and October 16 respectively.

  
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
Email: marshe_inc@yahoo.com.sg
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)

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