URA puts up housing plot with 60-yr lease
URA said the 1.02-ha residential site in Jurong Jurong Kechil will have a maximum GFA of 153,267.17 sq ft and can be developed into a condominium, flats or retirement housing.
Developers have options for a 30, 45 or 60-year-lease period for the plot, URA said. The development conditions for the site cap the maximum number of units at 203 units and can be built up to part five storeys and part eight storeys.
Commenting on the residential plot, Jones Lang LaSalle's national director of research Ong Teck Hui said: "The site is a popular suburban housing area supported by ample amenities and public transportation, so there should be good interest in this site."
The developer's trigger price for the residential land parcel which was made available through the Reserve List system in November 2006 was $24 million or $156.36 psf ppr for a 60-year lease term.
"As URA offers three options of different land tenures, the price of the land will be relatively cheaper as compared to the normal 99-year-leasehold land parcels from Government Land Sale Programme," said Nicholas Mak, SLP International's head of research.
He expects the tender to attract about five to 10 bids and added that most bidders are likely to select to bid for the 60-year land tenure because it will be more attractive to homebuyers and the longer land tenure will be easier for the homebuyer to obtain a mortgage.
Lee Sze Teck, senior manager of Dennis Wee Group (DWG), is looking at a top bid of between $200 and $250 psf ppr, an estimated breakeven cost between $450 and $500 psf, and an estimated sale price of between $550 and $600 psf.
"This is relatively affordable compared to freehold developments in the area which are going for around $1,000 psf," Mr Lee said.
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