reporter2
01-07-14, 16:01
Published June 27, 2014
3 residential plots launched for tender
2 are in Sengkang and the other, for exec condos, is in Choa Chu Kang
By lee meixian
[email protected] @LeeMeixianBT
TWO private residential sites in Sengkang and an executive condominium (EC) plot along Choa Chu Kang Drive, which together can yield about 1,700 homes, were launched for sale yesterday.
The three 99-year leasehold sites are the last on the confirmed list of the H1 2014 Government Land Sales programme to be released for tender.
Of the twin private residential sites in Fernvale Road in Sengkang, one is 16,604 square metres in size and the other, 17,414 sq m. Together, they can yield more than 1,100 units. Both their tenders close on Aug 7.
Given the scale of the two sites combined, SLP International executive director Nicholas Mak said he expects the batched tender to attract either big developers or consortiums of developers.
"Going by previous experience of batched tenders, developers are likely to submit their bids for both sites to minimise the chances of direct competition," he said.
But R'ST Research director Ong Kah Seng does not think developers, now more cautious, will bid for both sites together.
"Developers realise that there is actually little mileage to owning two adjacent suburban condominium sites or projects.
"After all, a suburban condo cannot be extensively used by residential-centric developers as representative of their ability to develop choice, investment-grade homes, unlike city fringe or high-end residential projects," he said.
Both sites are within walking distance of Thanggam LRT station, which connects to Sengkang MRT station.
The amenities in the neighbourhood include Seletar Mall (now being built), Sengkang Green Primary School, Sengkang Riverside Park and Punggol Waterway.
Two nearby residential plots sold last year have since been developed into Riverbank @ Fernvale by UOL Group and Rivertrees Residences by a Frasers Centrepoint Homes consortium.
Riverbank sold for $489 psf ppr and Rivertrees, for $533 psf ppr.
Analysts, taking into account these two projects' encouraging sales, the ample supply in the area and the softening private housing market, expect a "more measured" response - about five bids for each site, with a top bid of $420 to $480 psf ppr.
The EC site in Choa Chu Kang Drive, the third to be sold in Choa Chu Kang this year, is expected to yield about 535 homes when fully developed.
The batched tender for two EC plots in Choa Chu Kang Grove, which closed in February, was won by MCL Land; it acquired both sites at an average $357 psf ppr.
Analysts expect the Choa Chu Kang Drive site, located 500 metres from Choa Chu Kang MRT station, to draw five bids, with a winning bid of $310 to $350 psf ppr. The tender closes on Sept 4.
EC sales have turned sluggish since January 2013, when a ruling required developers of EC sites on government- bought land to launch their projects only 15 months after the land is acquired or after the completion of foundation works.
Developers have started bidding for EC land more realistically as a result.
3 residential plots launched for tender
2 are in Sengkang and the other, for exec condos, is in Choa Chu Kang
By lee meixian
[email protected] @LeeMeixianBT
TWO private residential sites in Sengkang and an executive condominium (EC) plot along Choa Chu Kang Drive, which together can yield about 1,700 homes, were launched for sale yesterday.
The three 99-year leasehold sites are the last on the confirmed list of the H1 2014 Government Land Sales programme to be released for tender.
Of the twin private residential sites in Fernvale Road in Sengkang, one is 16,604 square metres in size and the other, 17,414 sq m. Together, they can yield more than 1,100 units. Both their tenders close on Aug 7.
Given the scale of the two sites combined, SLP International executive director Nicholas Mak said he expects the batched tender to attract either big developers or consortiums of developers.
"Going by previous experience of batched tenders, developers are likely to submit their bids for both sites to minimise the chances of direct competition," he said.
But R'ST Research director Ong Kah Seng does not think developers, now more cautious, will bid for both sites together.
"Developers realise that there is actually little mileage to owning two adjacent suburban condominium sites or projects.
"After all, a suburban condo cannot be extensively used by residential-centric developers as representative of their ability to develop choice, investment-grade homes, unlike city fringe or high-end residential projects," he said.
Both sites are within walking distance of Thanggam LRT station, which connects to Sengkang MRT station.
The amenities in the neighbourhood include Seletar Mall (now being built), Sengkang Green Primary School, Sengkang Riverside Park and Punggol Waterway.
Two nearby residential plots sold last year have since been developed into Riverbank @ Fernvale by UOL Group and Rivertrees Residences by a Frasers Centrepoint Homes consortium.
Riverbank sold for $489 psf ppr and Rivertrees, for $533 psf ppr.
Analysts, taking into account these two projects' encouraging sales, the ample supply in the area and the softening private housing market, expect a "more measured" response - about five bids for each site, with a top bid of $420 to $480 psf ppr.
The EC site in Choa Chu Kang Drive, the third to be sold in Choa Chu Kang this year, is expected to yield about 535 homes when fully developed.
The batched tender for two EC plots in Choa Chu Kang Grove, which closed in February, was won by MCL Land; it acquired both sites at an average $357 psf ppr.
Analysts expect the Choa Chu Kang Drive site, located 500 metres from Choa Chu Kang MRT station, to draw five bids, with a winning bid of $310 to $350 psf ppr. The tender closes on Sept 4.
EC sales have turned sluggish since January 2013, when a ruling required developers of EC sites on government- bought land to launch their projects only 15 months after the land is acquired or after the completion of foundation works.
Developers have started bidding for EC land more realistically as a result.