Thursday, May 16, 2013

Five plots up for sale set to yield 2,700 homes


The Business Times  |  16 May 2013
FIVE 99-year leasehold plots released for sale by the government yesterday could yield more than 2,700 homes.

FIVE 99-year leasehold plots released for sale by the government yesterday could yield more than 2,700 homes.

The sites were launched by the Urban Redevelopment Authority (URA) and the Housing and Development Board (HDB) as part of the Government Land Sales (GLS) programme for the first half of the year.

One site, parcel B at Tampines Avenue 10, was put up for sale under the confirmed list.

The remaining four plots, at Toa Payoh Lorong 6, Siglap Road, Geylang East Avenue 1 and Prince Charles Crescent (parcel B), will be made available under the reserve list.

For the Tampines Avenue 10 parcel, analysts see a modest demand of three to six bidders with a winning bid in the range of $400 to $470 per square foot per plot ratio (psf ppr).

The site has a maximum gross floor area (GFA) of about 515,000 sq ft and can yield about 530 units.

"In terms of location and marketability, the four reserve list sites are more attractive than the confirmed list one," said Nicholas Mak, executive director for research and consultancy at SLP International.

Consultants noted that the Tampines plot was not near an MRT station, and sits among several developments that have either been launched for sale or will soon be.

"On top of Q Bay Residences with about 153 units unsold as at April 2013, there are at least another six sites not yet launched in the same cluster at Tampines Avenue 10," said Alice Tan, head of research at Knight Frank Singapore.

For the Toa Payoh Lorong 6 site, analysts foresee five to 12 bidders, with the winning bid at $680 to $920 psf ppr if the plot is triggered for sale.

The plot has a maximum GFA of about 458,000 sq ft and can yield about 550 homes. Market watchers liked its proximity to Braddell MRT station and its location in a mature estate and near schools such as CHIJ Toa Payoh and Pei Chun Primary School.

For the Siglap Road site, analysts expect upwards of seven bids, with a potential winning bid that ranges from $550 to $860 psf ppr if it is triggered for sale.

The site has a maximum GFA of 737,000 sq ft and can yield around 780 units.

"This is a rare chance for developers to stock up land in (the) East Coast area without having to go through a collective sale process, which requires more time and effort," said Knight Frank's Ms Tan.

Consultants also cited its location near East Coast Park and Victoria School, as well as the fact that the future development can offer sea views.

For the land parcel at Geylang Avenue 1, analysts highlighted that it is near Aljunied MRT station.

The top bid could be around $570 to $690 psf ppr, going by their estimates. Ong Kah Seng, director at R'ST Research, expects seven bids if the plot is triggered for sale.

The site has a maximum GFA of 188,000 sq ft that can yield 215 homes.

Mr Ong said developers will be keen to have a head start in the area which has few private developments, and Aljunied can benefit from the rejuvenation of nearby Paya Lebar as a business hub.

For the land parcel at Prince Charles Crescent, there could be three to five bidders with the winning bid between $850 and $1,070 psf ppr.

Some 650 homes could be yielded from this plot, which has a maximum GFA of 564,000 sq ft, if it is triggered for sale.

R'ST's Mr Ong said there are "ample new private housing choices" in this vicinity due to recent GLS sites sold and another Alexandra View site available on the reserve list.

The tender for Tampines Avenue 10 closes at noon on July 2.


Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C

Senior Sales Director
DTZ Property Network Pte Ltd (L3007960A)
Email: marshe_inc@yahoo.com.sg

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