http://www.straitstimes.com/archive/...dding-20140501
Sembawang, Potong Pasir sites up for bidding
Plot near Potong Pasir MRT station likely to draw more interest: Analysts
Published on May 1, 2014 1:46 AM
Bids for the 173,829 sq ft mixed-use site in Meyappa Chettiar Road are expected to be moderate, based on what was paid for The Venue Residences and Shoppes (above). The development went for $793 psf ppr in September 2012, back when the property market was still buoyant. -- PHOTO: CITY DEVELOPMENTS
By Cheryl Ong
TWO land parcels that can accommodate 1,300 homes in all were rolled out for sale under the Government Land Sales programme yesterday.
A plot in Meyappa Chettiar Road was put on the confirmed list and can be developed into a commercial and residential project.
Potential buyers can also check out a 309,419 sq ft parcel in Sembawang Road earmarked for executive condominiums (ECs).
The site is on the reserve list and can yield 605 units.
Experts noted that the 173,829 sq ft mixed-use site in Meyappa Chettiar Road should draw keen interest because it is next to the Potong Pasir MRT station.
Developers are also likely to favour the option of having retail units, which should draw passing commuters, said Mr Nicholas Mak, research head at SLP International.
The commercial component has a maximum gross floor area of 53,820 sq ft, while about 685 homes can be built on it.
Having commercial features will give the project an edge over neighbouring condominiums that have only residential units, said experts.
The Venue Residences and Shoppes, by City Developments, is the only other upcoming development nearby that will have retail offerings, said R'ST Research director Ong Kah Seng.
Bids are expected to be moderate, based on what was paid for The Venue Residences and Shoppes site, which went for $793 per sq ft (psf) per plot ratio (ppr) in September 2012 - back when the property market was still buoyant.
The winning bid for the Meyappa Chettiar Road parcel could come in at about $650 to $750 psf ppr, or $395.5 million to $456.3 million, with five to eight developers throwing their hats in the ring, said Mr Ong Teck Hui, national director of research and consultancy at Jones Lang LaSalle.
Experts were less optimistic about the site in Sembawang Drive because of the many ECs that have sprung up recently.
Half of the 10 residential sites up for sale on the confirmed list in the second half of last year were slated for ECs.
R'ST Research's Mr Ong said that the plot is "unlikely to be triggered for sale in these coming months" as a handful of EC sites have already been sold this year.
He expects only five bids for the Sembawang site, with a winning offer of $330 to $370 psf ppr, or about $214.2 million to $240.4 million.
He noted that there are also five more EC projects with about 3,110 units in total expected to go on sale in the second half of the year.
"If sales of these projects are encouraging, then it will spur buyers' and developers' sentiments for ECs," he said.
SLP International's Mr Mak also noted that the Urban Redevelopment Authority is expected to roll out another EC site at Sembawang Avenue on the confirmed list. This could yield 620 units.
Demand for ECs has been lacklustre, with only 149 units sold in the three months to March 31, Jones Lang LaSalle's Mr Ong noted.
"As private residential prices soften, some potential EC buyers will hesitate as a private home may eventually become affordable to them," he added.
The tender for the site in Meyappa Chettiar Road will close on Aug 19.
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