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Govt rolls out 2 residential, 5 industrial sites

Published on Nov 01, 2013

By Cheryl Ong


TWO residential and five industrial sites were rolled out by the Government yesterday.

The residential sites are in Westwood Avenue and Lorong Lew Lian, and can yield a total of 980 homes.

The plot in Westwood Avenue is on the confirmed list, while Lorong Lew Lian plot is on the reserve list. Each has a lease of 99 years.

Confirmed sites go on sale regardless of interest. Those on the reserve list are put up for tender only if developers submit an acceptable initial offer.

Analysts said the 186,051 sq ft Westwood Avenue site is expected to draw keen interest from developers on the back of strong demand for executive condominiums (ECs).

Knight Frank Singapore research head Alice Tan said demand would also come from Housing Board upgraders living in the area as the supply of EC sites there has been limited.

Despite its far-flung location, the project could benefit from the makeover of the nearby Lakeside area, said R'ST Research director Ong Kah Seng.

The plot is expected to draw a top bid of $285 to $313 per sq ft (psf) per plot ratio (ppr) - or $148 million to $164 million.

But experts do not expect keen interest in the 150,762 sq ft Lorong Lew Lian site.

"The site is unlikely to be triggered for sale (in the next six months) due to the cautious private residential buyers' sentiments prevailing in the aftermath of the total debt servicing ratio," said Mr Ong.

The TDSR limits a borrower's ability to take out a mortgage from a bank.

Experts expect the site to draw a bid of $620 to $720 psf ppr, or $280 million to $326 million, if triggered.

JTC Corp and the Urban Redevelopment Authority put five sites in Tuas South and Gambas Crescent up for sale.

The Tuas South sites are on the confirmed list, with a tenure of 21 years and seven months each.

Two are about 32,000 sq ft and the other is nearly 49,000 sq ft. All are for heavy industrial use.

Colliers International executive director of industrial services Tan Boon Leong said he expects each site to draw eight to 10 bids, with a top bid of $80 to $100 psf ppr each - or about $2.6 million to $4.9 million.

"The manageable prices of the three sites are expected to draw interest from small and medium enterprises," he said.

In Gambas Crescent, a 153,943 sq ft plot is on the confirmed list, while a 168,618 sq ft site is on the reserve list. Both have a lease of 30 years.

Experts said the sites should draw keen bidding interest after Far East Organization outgunned rival bidders for two other nearby sites.

Experts said the confirmed list site is expected to draw a winning bid of $100 to $130 psf ppr, or $38 million to $49 million.

The site on the reserve list is expected to draw a bid of $110 to $140 psf ppr, or $46 million to $59 million.

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