reporter2
29-11-19, 16:05
URA launches two Canberra Drive residential sites for tender
Both parcels are on 99-year leases and can yield a total of about 675 units
Fri, Nov 29, 2019
NG REN JYE
https://www.businesstimes.com.sg/sites/default/files/styles/500x300/public/image/2019/11/29/BT_20191129_MAP_3963773.jpg
THE Urban Redevelopment Authority (URA) has put up two residential sites along Canberra Drive for sale by public tender under its Confirmed List for the second half 2019.
The adjacent land parcels, labelled A and B, both have 99-year leases and can potentially yield about 675 residential units in total, the URA said on Thursday.
Parcel A spans 13,315.3 sq m and has a maximum gross floor area (GFA) of 18,642 sq m. It can yield about 220 housing units, with a maximum building height of 35 to 40 m or five storeys, whichever is lower.
The larger Parcel B has an area of 27,566.1 sq m and a GFA of 38,593 sq m. It can yield about 455 units, with a maximum building height of 35 to 50 metres or five storeys, whichever is lower. The sites are connected to Sembawang Road and Seletar Expressway, and are within walking distance of the recently opened Canberra MRT station on the North South Line.
Nearby amenities include Sembawang Shopping Centre and Sun Plaza; Sembawang Primary School is also in the vicinity.
The tenders for the sites close at noon on March 3, 2020.
The tender closing will be batched with an executive condominium site in Fernvale Lane, which will be launched for sale next month.
Real estate services company JLL said the lack of new condo launches in the vicinity should lead to developments on the sites and attract healthy demand for entry-level private housing favoured by HDB upgraders and first-timers.
Tricia Song, head of research for Singapore at Colliers International, said the URA's having split the plot into these two smaller sites has made them more palatable to a wider range of developers.
Comparable condos in the vicinity such as Eight Courtyards, The Nautical and Canberra Residences traded at S$900 to S$1,000 per square foot (psf). Ms Song said developers for the two parcels could look to sell at an average price of S$1,250 psf.
Analysts said Parcel A is the more attractive of the two; its smaller size makes it more affordable and less risky. It also has a more regular shape and is nearer Canberra MRT station.
Ms Song expects four to six bids to come in for it, and from smaller developers. The top bid is expected to be around S$135 million.
The larger Parcel B, on the other hand, may garner three to five bids, likely from medium-sized to larger developers, with the top bid likely to be about S$280 million.
Huttons Asia said there will be close to 800 executive condo units launched in Sembawang in 2020/2021, which may influence developers' decision to bid for the sites.
Regarding the batched land tender, Nicholas Mak, head of research and consultancy at ERA Realty, said one of the reasons the government does it is to moderate land prices. "This is based on the theory that a developer would not have the financial resources or willingness to bid on all the government land sales (GLS) sites whose tenders close on the same day," he said.
He added that the strategy might not work, and developers might instead acquire both sites to corner the market in a neighbourhood.
Both parcels are on 99-year leases and can yield a total of about 675 units
Fri, Nov 29, 2019
NG REN JYE
https://www.businesstimes.com.sg/sites/default/files/styles/500x300/public/image/2019/11/29/BT_20191129_MAP_3963773.jpg
THE Urban Redevelopment Authority (URA) has put up two residential sites along Canberra Drive for sale by public tender under its Confirmed List for the second half 2019.
The adjacent land parcels, labelled A and B, both have 99-year leases and can potentially yield about 675 residential units in total, the URA said on Thursday.
Parcel A spans 13,315.3 sq m and has a maximum gross floor area (GFA) of 18,642 sq m. It can yield about 220 housing units, with a maximum building height of 35 to 40 m or five storeys, whichever is lower.
The larger Parcel B has an area of 27,566.1 sq m and a GFA of 38,593 sq m. It can yield about 455 units, with a maximum building height of 35 to 50 metres or five storeys, whichever is lower. The sites are connected to Sembawang Road and Seletar Expressway, and are within walking distance of the recently opened Canberra MRT station on the North South Line.
Nearby amenities include Sembawang Shopping Centre and Sun Plaza; Sembawang Primary School is also in the vicinity.
The tenders for the sites close at noon on March 3, 2020.
The tender closing will be batched with an executive condominium site in Fernvale Lane, which will be launched for sale next month.
Real estate services company JLL said the lack of new condo launches in the vicinity should lead to developments on the sites and attract healthy demand for entry-level private housing favoured by HDB upgraders and first-timers.
Tricia Song, head of research for Singapore at Colliers International, said the URA's having split the plot into these two smaller sites has made them more palatable to a wider range of developers.
Comparable condos in the vicinity such as Eight Courtyards, The Nautical and Canberra Residences traded at S$900 to S$1,000 per square foot (psf). Ms Song said developers for the two parcels could look to sell at an average price of S$1,250 psf.
Analysts said Parcel A is the more attractive of the two; its smaller size makes it more affordable and less risky. It also has a more regular shape and is nearer Canberra MRT station.
Ms Song expects four to six bids to come in for it, and from smaller developers. The top bid is expected to be around S$135 million.
The larger Parcel B, on the other hand, may garner three to five bids, likely from medium-sized to larger developers, with the top bid likely to be about S$280 million.
Huttons Asia said there will be close to 800 executive condo units launched in Sembawang in 2020/2021, which may influence developers' decision to bid for the sites.
Regarding the batched land tender, Nicholas Mak, head of research and consultancy at ERA Realty, said one of the reasons the government does it is to moderate land prices. "This is based on the theory that a developer would not have the financial resources or willingness to bid on all the government land sales (GLS) sites whose tenders close on the same day," he said.
He added that the strategy might not work, and developers might instead acquire both sites to corner the market in a neighbourhood.