URA releases 3 plots; can yield 1,325 units

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http://www.businesstimes.com.sg/sub/...70340,00.html?

Published December 23, 2011

URA releases 3 plots; can yield 1,325 units

Parcels located in Bedok South, Jervois Rd, Boon Lay Way

By MINDY TAN


THREE parcels of residential land, the last of the bumper supply injected into the market this year, were released for sale yesterday, potentially yielding about 1,325 units.

This is to provide developers and home-buyers more choices for private housing, said the Urban Redevelopment Authority (URA).

This will add to the 21,560 units which have been launched for sale under the Government Land Sales (GLS) programme this year, bringing the total number to some 22,900 units.

URA yesterday launched two 99-year leasehold plots at Bedok South Avenue 3 and Jervois Road; they are expected to yield about 595 and 140 units respectively. Both sites are under the confirmed list of the government land sales programme for the second half of 2011.

Png Poh Soon, head of research at Knight Frank Singapore, said he expects the winning bid to be around $470 to $500 psf; potential selling price of the completed development can range between $1,000 and $1,050.

'We expect this site to generate a decent amount of interest, as the proximity to MRT will still be a good defensive factor for developers to draw local genuine buyers who are not affected by the additional buyers' stamp duty (ABSD),' he said.

Chua Chor Hoon, head of DTZ Southeast Asia research, too expects strong interest from developers, given previous successful GLS projects, including Casa Mera, Optima, and Bedok Residences.

The site, which is located next to Bedok Court, has a maximum gross floor area of about 647,491 sq ft, and is expected to yield about 595 units.

The plot at Jervois Road, the only prime site in the 2011 GLS programme, has a maximum gross floor area of about 135,000 sq ft, and is expected to yield 140 units.

Alan Cheong, associate director of Savills research and consultancy, expects this plot to be more popular with developers, given that its smaller size makes it accessible. 'If you go above $200 million for land cost, chances are you will attract only the larger boys. The (Jervois site) is smaller, and may draw in more bids,' he said.

Knight Frank's Mr Png noted however, that while market watchers had earlier expected the site to garner keen interest due to its prime location, the implementation of ABSD 'may temper with the interest for this site as it is placed within the mid- to high-end residential segment, which now faces greater uncertainty'.

He expects the winning bid for the site to come in around $900 to $950 psf, with potential selling price ranging between $1,600 and $1,650.

'The expected quantum of $125 million may attract more boutique sized players to tender for the site as it is located near the Chatsworth Good Class Bungalow area,' he added.

The final site, a 99-year leasehold site at Boon Lay Way, was offered under the reserve list. The site, which has a maximum gross floor area of 523,879 sq ft, is expected to yield around 590 units.

Under the reserve list system, the government releases a site for sale only if an interested party submits an application with a minimum price that is deemed acceptable. By contrast, land parcels under the confirmed list are sold according to scheduled dates.

'The plot seems quite attractive,' said Mr Cheong, citing its easy accessibility to Jurong East MRT station, and Jurong Gateway being primed to be the largest commercial hub outside the city centre.

DTZ's Ms Chua agreed, but noted that despite the site's plus points, and in view of 'the latest cooling measures and a more cautious economic outlook for next year', developers may not trigger a bid for the reserve site.

No tenders have been triggered for the sites on the H2 2011 reserve list to-date, she added.

Tender for the residential sites at Jervois Road and Bedok South Avenue 3 will close at 12 noon on Feb 2 and 9, respectively.

The launch of these sites marks the last of the many residential plots of land released into the market this year, in the government's attempt to arrest the perceived runaway property market.

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http://www.straitstimes.com/Money/St...ry_748000.html

Prime Jervois Road site among 3 parcels put on sale

Published on Dec 23, 2011

By Esther Teo, Property Reporter


THREE land parcels which could yield 1,325 homes were offered to developers yesterday including one choice site in Jervois Road, a prime area where new development plots are scarce.

This brings the number of homes that can be built on land sites put up for sale this year to a record 22,885 units as strong demand prompted developers to snap up land sites.

The plum 0.8ha Jervois Road land parcel in District 10 can yield about 140 homes. It has a maximum height of five storeys.

Experts said that the site, near the Chatsworth Park good class bungalow area, is expected to attract healthy interest owing to its small size.

The last time a land parcel was up for sale in the prime districts of 9, 10 and 11 was in Handy Road in 2007, SLP International research head Nicholas Mak said.

However, Mr Lee Sze Teck, senior manager of research and consultancy at Dennis Wee Group (DWG), noted that the 99-year leasehold site is oddly shaped.

This, together with a new requirement to complete and sell all units in five years so as not to incur the 10 per cent additional stamp duty, will put a cap on the developers' bid price, he added.

The new requirements for developers were recently announced as part of the Dec 8 cooling measures.

'It could attract small developers as the size of the site and quantum of the bid could be in the range of $85 million to $95 million. We could see between four and six bidders,' Mr Lee added.

He estimates that the top bid will come in between $650 and $700 per sq ft (psf) per plot ratio (ppr).

SLP's Mr Mak expects the top bid to range from $85 million to $94 million - or $630 to $695 psf ppr.

He had trimmed his price expectation by about 10 per cent due to the impact of the additional buyer's stamp duty and the softer economy next year. About 9 to 16 bids are expected, Mr Mak added.

The Urban Redevelopment Authority (URA) also released a 2.8ha site at Bedok South Avenue 3 on the confirmed list and a 1.1ha site at Boon Lay Way on the reserve list yesterday. Both are 99-year leasehold sites.

Confirmed list sites go on sale regardless of interest while land on the reserve list is put up for tender only if developers make an acceptable initial offer.

The Bedok site near Tanah Merah MRT station can fit about 595 homes while the Boon Lay site in Jurong Gateway can yield an estimated 590 homes.

DWG's Mr Lee said that the Boon Lay site could be triggered for sale for between $180 million and $200 million.

There have not been any government land sales (GLS) sites for sale in Jurong East since The Mayfair and Westmere in the mid-1990s. The latest site beside Lakeside MRT was sold to Keppel Land for $499 psf ppr in May last year, he noted.

'The last two white (mixed-use) sites (in Jurong East) sold are being developed into commercial and retail use.'

'Together with the amenities in Jurong East Town Centre, IMM, JCube and the future Ng Teng Fong General Hospital, there are plenty of amenities making this site attractive,' Mr Lee added.

However, SLP's Mr Mak does not expect the Boon Lay site to be triggered for sale as there are better sites on the confirmed list of the GLS programme for the first half of next year.

The Bedok site, however, is expected to attract a top bid of up to $291 million - or between $380 and $450 psf ppr, he said.