Aerial view of the white site at Marina View. (Photo: URA)
The government released for sale on Wednesday (31 Oct) two confirmed list sites and one reserve list plot that can collectively yield 540 hotel rooms and slightly over 2,000 residential units.
In particular, the Housing and Development Board (HDB) launched for sale a 24,938.7 sq m site at Tampines Avenue 10 for an executive condominium (EC) project. It has a maximum gross floor area (GFA) of 69,829 sq m, and the winning buyer is allowed to build up to 700 EC units.
Experts think the land parcel will see stiff competition given the limited supply of EC sites in the market and the strong bidding for such plots this year. For instance, Canberra Link and Anchorvale Crescent attracted nine and seven bids respectively at $558 psf ppr and $576 psf ppr.
“Tampines is the first regional centre in Singapore and a sought after place to live in. The parcel sits in a mature estate with plenty of amenities like Our Tampines Hub, connectivity options like Tampines Downtown line and green spaces like Bedok Reservoir,” Huttons Asia’s research head Lee Sze Teck told the Straits Times.
Colliers International’s Singapore research head Tricia Song also believes that the new rules on the average unit size of 85 sq m will unlikely dampen the demand for ECs as such properties are intended for families in the first place. The 700-unit limit also indicates that the project’s average dwelling size is over 85 sq m.
She expects the EC site to attract seven to nine developers, with a top bid of $420 million ($560 psf ppr). On the other hand, Knight Frank Singapore’s research head Lee Nai Jia is more upbeat expecting offers of between $640 and $680 psf ppr, given the large number of upgraders eyeing the area.
Meanwhile, the Urban Redevelopment Authority (URA) released for sale a 11,643.3 sq m private condo site at Kampong Java Road. With a GFA of 32,602 sq m, the successful bidder can build about 435 houses on the land parcel.
“Response to the Kampong Java site could provide an indication of developers’ confidence in the high-end home market after a spate of collective sales in the area and the recent announcement on revised unit size guidelines,” said Song from Colliers.
She pointed out that site will need to comply with the new average size of 85 sq m. Nonetheless, she expects the top bid to reach $470 million ($1,350 psf ppr).
As for Knight Frank’s Lee, he is more bullish. “Land parcels in the Kampong Java area do not come by often, and the site has the added benefit of being within walking distance to Newton MRT station. We expect the winning bid to range from $1,500 to $1,600 psf ppr,” he explained.
Unlike the two aforementioned confirmed list sites, the third site released for sale is a reserve list plot. The white site at Marina View has a land area of 7,817.6 sq m and a subterranean stratum of 18 sq m. With a GFA of 101,629 sq m, it can yield around 540 hotel rooms and 905 private condos.
“The land parcel is a particularly attractive site – it is located within the central business district (CBD), with the future Shenton Way MRT station right at its doorstep. Additionally, supply is expected to be limited in the future, with most unsold units from new projects in the area likely to be snapped up. We expect the winning bid to range from $1,550 to $1,650 psf per plot ratio (psf ppr), attracting between 5 to 8 bids,” said Lee.
As for Song, she expects the site to attract developers with hotel interests or joint ventures, with a top bid at $1.5 billion to 1.75 billion, or $1,380 to 1,600 psf ppr.
All three land parcels have a leasehold tenure of 99 years.
The tender for the two confirmed list sites will close on 15 January 2019. As for the reserve list plot in Marina View, it will be triggered for sale if a party commits to offer an acceptable price to the government.