Thursday, September 13, 2012

Sites at Jalan Jurong Kechil, Jurong Town Hall Road up for sale


Posted: 05 September 2012 1728 hrs
CNA

SINGAPORE: The Urban Redevelopment Authority (URA) will be placing Reserve List sites at Jalan Jurong Kechil and Jurong Town Hall Road for sale by public tender.

The move comes after it received applications from developers to release the sites for sale.

Under the Reserve List system, a site will only be put up for tender if the developer's minimum bid price is acceptable to the government.

URA said a developer has committed to bid no less than S$23.96 million on a 60-year lease term for the residential site at Jalan Jurong Kechil.

Analysts said the trigger price works out to about S$156 per square foot (psf) per plot ratio.

The site spans 1.02 hectares and has a gross floor area of 14,200 square metres.

It has a lease option of 30 years, 45 years or 60 years.

URA told MediaCorp that this is the first residential site that has been offered for sale on such variable lease terms.

It added that the site was released for sale under a 30-year lease when it was first placed on the Reserve List in 2006. A wider variety of lease terms was introduced for this site in 2010 to provide more development options for prospective tenderers.

URA said the site can be developed into a condominium or apartments, or even retirement housing.

Lee Sze Teck, Dennis Wee Group's senior manager of Training, Research and Consultancy, said: "With an ageing population in Singapore, there will be demand for quality housing for those planning to retire.

"The site is well located within an residential area and near to the Bukit Batok Nature Park. Amenities like West Mall and public transportation like the upcoming Beauty World MRT station are nearby."

Mr Lee expects the top bid to come in at between S$200 and S$250 psf per plot ratio.

The other Reserve List site which has been triggered for sale is the hotel site at Jurong Town Hall Road.

An unnamed developer has pledged to bid at a price of at least S$101.98 million for the 0.9 hectare plot.

URA said the 99-year leasehold site has a potential gross floor area of about 19,000 square metres.

It has been earmarked for a distinctive hotel development with a garden setting which will help to anchor Jurong Lake District as a unique lakeside destination for business and leisure.

Some analysts expect developers to be cautious in bidding for the site.

Nicholas Mak, executive director, Research & Consultancy Department, SLP International Property Consultants, said: "The Jurong Lake locality is an untested hotel micro-market with this site being the first hotel land parcel up for sale in the region.

"This risk is mitigated to an extent with a degree of development flexibility conferred onto the site, as the successful tenderer is allowed to develop up to a maximum of 40 per cent of the GFA for commercial uses."

Mr Mak added that the site would attract about five to 10 bids, with the estimated land price to be S$153 million to S$170 million or about S$750 to S$833 psf per plot ratio.

URA will launch the public tender for the sites in about two weeks. The launch date will be announced later.


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