Published 23 February 2011
The Business Times
By Uma Shankari
THE Housing & Development Board (HDB) has launched another two residential sites – a condominium plot at the junction of Bendemeer Road and Whampoa East, and an executive condominium (EC) site at Tampines Central 7 – for sale.
Both sites are from the confirmed list of the Government Land Sales (GLS) programme for the first half of 2011. The 99-year leasehold condo site at Bendemeer Road is within walking distance of Boon Keng MRT station. The site has a maximum permissible gross floor area of 701,400 sq ft and an estimated 780 units can be built on it.
Analysts expect the land parcel to be popular with developers as it is within a matured housing estate and near an MRT station. They estimate that the top bid could be in the range of $400-$480 per square foot per plot ratio (psf ppr).
The EC site in Tampines is also expected to draw keen interest as there have been no new EC projects in the estate over the last 10 years. Around 660 flats can be built on the site, which has a maximum permissible gross floor area of 710,400 sq ft. The top bid for the EC plot is expected to be in the range of $250-$330 psf ppr.
Nicholas Mak, head of research at SLP International, expects there to be at least fours bids for each site.
‘The recent cooling measures may slightly dampen demand for development sites in the coming months. But some developers are still looking to purchase land at attractive locations, especially those sites that are near MRT stations,’ he said.
Noted Ong Kah Seng, Cushman & Wakefield senior manager for Asia-Pacific research: ‘While current private home buying sentiments may have moderated, there is still a strong demand base from genuine owner occupiers, sufficient to motivate developers to continue acquiring and releasing projects at choice sites – albeit at more realistic prices.’
The tender for the site at Bendemeer Road will close at noon on April 7, while that for the EC site at Tampines will close at noon on April 14. HDB said that another three new sites will be launched under the confirmed list by government agencies next month.