http://www.businesstimes.com.sg/arch...slate-20140611

Published June 11, 2014

New sites among the choicest in H2 slate

Consultants' favourites include plots at Lorong Puntong in Upper Thomson, Tampines Rd

By Kalpana Rashiwala

[email protected] @KalpanaBT


[SINGAPORE] Private housing sites at Lorong Puntong in the Upper Thomson area and in Tampines Road (diagonally opposite Kovan MRT Station) are among the choicest sites in the second half 2014 Government Land Sales (GLS) Programme, said property consultants.

The two plots are among the new sites on the latest confirmed list.

The Lorong Puntong land parcel, which is near the upcoming Bright Hill MRT Station and which is estimated to generate about 280 homes, will be launched for tender in August. It is next to the the Inglewood landed estate.

CBRE head of Singapore research Desmond Sim estimates the top bid for the plot to be at least $650-$700 per square foot per plot ratio (psf ppr). Orange-Tee head of research and consultancy Christine Li, however, pegs the site's price, at $720-$745 psf ppr.

Ms Li estimates the price of the Kovan site, which is slated for launch in September, at $690-$720 psf ppr while Mr Sim estimates the winning bid to be at least $650-$700 psf ppr.

While the site could generate interest due to its proximity to Kovan MRT Station and nearby amenities, argues JLL national director Ong Teck Hui, "its main drawback is that it is fronting two busy roads - Tampines and Upper Serangoon".

The site is estimated to yield about 340 homes.

Ms Li also expects good response from developers for the housing site at Jurong West St 41 near Jurong Lake which has been rolled over from the H1 2014 reserve list to the H2 confirmed list. The site is located between The Lakeshore condo and the Lakeville project. She estimates the site's price at $670-$710 psf ppr.

Also on the favourites list of most consultants are the two commercial and residential sites on the confirmed list: at Yishun Avenue 4 and the Holland Road site, which will form part of the Holland Village Extension plan unveiled in Master Plan 2014.

JLL's Mr Ong noted that these two land parcels are likely to be the most attractive of the sites on the H2 GLS Programme as they "contain substantial commercial quantum which could provide a positive balance to the residential component, given the challenging residential market".

The choicer Holland Road plot is near Holland Village MRT Station while the Yishun site is located in a mature HDB estate, where the surrounding households will provide strong catchment for shops and F&B in the commercial component, Mr Ong added.

On the reserve list - where sites are released upon successful application by a developer - MND has added a housing site in Dundee Road, next to Queenstown MRT Station and the popular Commonwealth Towers condo which is under construction.

Colliers International director Chia Siew Chuin expects the proposed development on the site to attract a potential pool of HDB flat upgraders from Commonwealth, Queenstown and Redhill estates.

Next to Redhill MRT Station, Alexandra View (Parcel A) - which remains on the reserve list - has been rezoned to residential with commercial at the first storey, to allow provision of amenities to serve local residents, MND said.

CBRE's Mr Sim said that the site - which he lists as one of his top picks - would fetch at least $850 psf ppr, taking into account the commercial component.

The H2 GLS Programme has three executive condo (EC) sites on the confirmed list that can generate a total 1,520 units. There are no EC sites on the reserve list. ECs are a public-private housing hybrid.

The 1,520-unit EC supply in H2 is 45 per cent lower than the 2,770-unit EC supply in the H1 confirmed and reserve lists. When contacted, a URA spokesman said that among the factors the government considers in planning EC supply are "market sentiments and the recent refinements to the EC Housing Scheme on Dec 9, 2013, such as the 30 per cent cap on mortgage servicing ratio (MSR) and the resale levy imposed on second-timers".

"In addition, 10 EC sites were successfully tendered in 2013 and developers will be launching these for sale in the later part of this year and early next year. The government will continue to monitor the property market closely."

The three confirmed-list EC sites for H2 comprise two new sites located in Anchorvale Crescent and Woodlands Avenue 12 and a plot in Sembawang Road/Canberra Link that is being rolled over from the H1 reserve list.

R'ST Research director Ong Kah Seng noted that EC demand has slowed in the first half of this year. He highlights the launch of Skypark Residences and Waterwoods EC projects in November last year, just before the Dec 9 rule changes. "From December 2013 to April 2014, sales in Skypark Residences and Waterwoods were mediocre - only 25 units and 56 units respectively."

Ms Li also highlighted that there were no batched tender exercises in the H2 programme. This refers to tender closings for adjacent sites on the same date in a bid to moderate land prices.