Govt offers three 99-year residential sites for sale

Published 30 March 2011
The Business Times
By Emilyn Yap

Plots in Pasir Ris, Sembawang and Sengkang may yield 1,500 homes in all

THE government has put three residential sites, which can together yield some 1,500 homes, up for tender.

Govt offers three 99-year residential sites for saleAll three are on the confirmed list, have a 99-year lease, and are next to state land parcels that were sold last year.

Predictions of developer demand were mixed – consultants’ takes ranged from the mildly upbeat to the slightly sceptical. Interest in the sites should be ‘overall positive’, said Cushman & Wakefield senior manager for Asia Pacific research Ong Kah Seng.

But Credo Real Estate executive director Ong Teck Hui thought that the latest plots are ‘more mediocre’, with less attractive locations compared with those put up for sale earlier. ‘The current sites are not very near MRT stations so I’d expect (fewer tenders) and lower tender bids for them,’ he said.

The Urban Redevelopment Authority (URA) yesterday rolled out a plot at the junction of Jalan Loyang Besar and Pasir Ris Drive 4. It has a maximum permissible gross floor area (GFA) of around 610,000 square feet and can accommodate some 580 units.

The site is near Pasir Ris Park, but is some distance from Pasir Ris MRT station. It is adjacent to a plot that Frasers Centrepoint and Far East Organization bought in October last year for $335 per square foot per plot ratio (psf ppr).

The tender closes on May 10. Analysts expect the top bid to come in at $336-$430 psf ppr.

CBRE Research executive director Li Hiaw Ho said that units at NV Residences nearby are marketed at $820-$880 psf. Based on these price levels, the latest site should fetch $336-$377 psf ppr, he said.

URA also launched a plot at the junction of Sembawang Road and Jalan Sendudok. It has a maximum permissible GFA of around 416,900 sq ft and can be developed into a condominium or a strata landed housing project. A developer that opts for the former can potentially build 390 units.

The site is next to Sembawang Shopping Centre and the recently launched Canberra Residences. MCC Land had won the tender for the condominium site last year for $387 psf ppr.

The tender for the latest site closes on May 26. Consultants predict a top bid of $340-$410 psf ppr.

The Housing and Development Board is putting the third land parcel at Buangkok Drive/Sengkang East Drive up for tender starting today. It has a maximum GFA of around 631,300 sq ft and can yield an estimated 550 units.

The site is beside Austville Residences, developed by a tie-up between United Engineers and Lee Metal Group. They won the tender for the executive condominium site last year for $321 psf ppr.

The tender for this site closes on June 2. Consultants expect the top bid to be in the range of $320-$450 psf ppr.

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