http://www.straitstimes.com/archive/...homes-20130301

Two new sites to yield more than 1,000 homes

Response to Tiong Bahru, Sengkang sites will indicate developers' mood

Published on Mar 01, 2013

By Esther Teo Property Correspondent


TWO residential sites - in Tiong Bahru and Sengkang - that can yield 1,055 units in all were put up for sale by the Government yesterday.

Both are 99-year leasehold plots and are part of the confirmed list of the Government Land Sales (GLS) programme for the first half of this year.

They are also the first GLS tenders launched after January's cooling measures, so the bids and tender participation rate will give a good indication of developer sentiment, experts say.

The site in Kim Tian Road, in the Tiong Bahru estate, is about 11,000 sq m and can yield an estimated 500 units.

The limited supply of sizeable, regular-shaped plots near Tiong Bahru MRT station is expected to generate more interest for this site than the Sengkang one.

It is also a short drive from the Central Business District, Marina Bay and Orchard Road.

Tiong Bahru is also a popular residential area and there could be pent-up demand from home buyers for new condominiums there, said Mr Nicholas Mak, head of research at SLP International.

The last time a GLS 99-year leasehold condominium development site was launched in the area was in February 2003. That site was developed into Meraprime condominium.

The top bid is expected to range from $411 million to $435 million - or $870 to $920 per sq ft (psf) per plot ratio (ppr). Five to 10 bidders can be expected, Mr Mak added.

HSR Property Group special adviser Donald Han expects bids to come in between $850 and $900 psf ppr.

Experts also expect good developer interest for the Sengkang plot, as mass-market home sales continue to be healthy. The 16,600 sq m Sengkang West Way site, which can yield 555 units, is next to Punggol River and close to Fernvale and Layar LRT stations.

It is estimated to attract bids from $214 million to $241 million - or $400 to $450 psf ppr. About four to eight bidders could participate, Mr Mak said.

However, HSR's Mr Han said developers might be more cautious in the light of the cooling measures, with the top few bids likely to come in within close range of each other. "There might be less frenzied bidding, with bids becoming more moderated... Developers know it is unlikely that projects will sell out that quickly any more," he added.

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