Three plots for 1,700 homes up for tender

[reporter2]

Published June 27, 2014

3 residential plots launched for tender

2 are in Sengkang and the other, for exec condos, is in Choa Chu Kang

By lee meixian

[email protected] @LeeMeixianBT


TWO private residential sites in Sengkang and an executive condominium (EC) plot along Choa Chu Kang Drive, which together can yield about 1,700 homes, were launched for sale yesterday.

The three 99-year leasehold sites are the last on the confirmed list of the H1 2014 Government Land Sales programme to be released for tender.

Of the twin private residential sites in Fernvale Road in Sengkang, one is 16,604 square metres in size and the other, 17,414 sq m. Together, they can yield more than 1,100 units. Both their tenders close on Aug 7.

Given the scale of the two sites combined, SLP International executive director Nicholas Mak said he expects the batched tender to attract either big developers or consortiums of developers.

"Going by previous experience of batched tenders, developers are likely to submit their bids for both sites to minimise the chances of direct competition," he said.

But R'ST Research director Ong Kah Seng does not think developers, now more cautious, will bid for both sites together.

"Developers realise that there is actually little mileage to owning two adjacent suburban condominium sites or projects.

"After all, a suburban condo cannot be extensively used by residential-centric developers as representative of their ability to develop choice, investment-grade homes, unlike city fringe or high-end residential projects," he said.

Both sites are within walking distance of Thanggam LRT station, which connects to Sengkang MRT station.

The amenities in the neighbourhood include Seletar Mall (now being built), Sengkang Green Primary School, Sengkang Riverside Park and Punggol Waterway.

Two nearby residential plots sold last year have since been developed into Riverbank @ Fernvale by UOL Group and Rivertrees Residences by a Frasers Centrepoint Homes consortium.

Riverbank sold for $489 psf ppr and Rivertrees, for $533 psf ppr.

Analysts, taking into account these two projects' encouraging sales, the ample supply in the area and the softening private housing market, expect a "more measured" response - about five bids for each site, with a top bid of $420 to $480 psf ppr.

The EC site in Choa Chu Kang Drive, the third to be sold in Choa Chu Kang this year, is expected to yield about 535 homes when fully developed.

The batched tender for two EC plots in Choa Chu Kang Grove, which closed in February, was won by MCL Land; it acquired both sites at an average $357 psf ppr.

Analysts expect the Choa Chu Kang Drive site, located 500 metres from Choa Chu Kang MRT station, to draw five bids, with a winning bid of $310 to $350 psf ppr. The tender closes on Sept 4.

EC sales have turned sluggish since January 2013, when a ruling required developers of EC sites on government- bought land to launch their projects only 15 months after the land is acquired or after the completion of foundation works.

Developers have started bidding for EC land more realistically as a result.

[chan600]

I think the attraction of the 2 sites at Fernvale may not be high unless developers dun price high next time.

Went to see the River tree and River bank also in Fernvale. Their 3 br are selling at about $1,100 and $1,000 psf respectively. Still got many unsold units (included those not released).

[reporter2]

http://www.straitstimes.com/archive/...ender-20140627

Three plots for 1,700 homes up for tender

Paired Sengkang sites expected to draw big players

Published on Jun 27, 2014 1:14 AM

By Rachael Boon


THREE government residential sites were released yesterday - two in Sengkang and one in Choa Chu Kang.

The 99-year-lease plots are on the confirmed list under the Government Land Sales Programme for the first half of the year and can yield a total of about 1,700 homes.

Two of the sites are adjacent to each other in Fernvale Road. They have been paired under a scheme that aims to deter overly aggressive bids.

There is also an executive condominium (EC) plot in Choa Chu Kang Drive.

Parcel A in Fernvale Road has a site area of 178,723 sq ft (16,603.9 sq m), with a maximum gross floor area of 536,171 sq ft (49,812 sq m).

The adjacent 187,441 sq ft (17,413.9 sq m) Parcel B has a maximum gross floor area of 562,328 sq ft (52,242 sq m).

They are near the Thanggam LRT station and primary schools such as Sengkang Green and Fernvale.

SLP International research head Nicholas Mak said developers are likely to submit bids for both Fernvale sites to minimise the chances of direct competition.

"As the two sites together can produce a large number of housing units, about 1,100 to 1,200 units, this batched tender is more likely to attract big developers or consortiums of developers."

He expects five to nine bidders with top offers to vary from $450 to $480 psf per plot ratio (psf ppr).

This is lower than the land prices of nearby residential parcels sold to developers last year. The site of Riverbank @ Fernvale went for $489 psf ppr and the Rivertrees Residences plot fetched $533 psf ppr.

Mr Mak said: "Land Parcel B may fetch a slightly higher price as it is in a slightly better location than Parcel A due to the former's closer proximity to the LRT station."

The tenders for the Fernvale Road sites close on Aug 7.

The Choa Chu Kang site is 205,138 sq ft (19,058 sq m), with a maximum gross floor area of 574,383 sq ft (53,362 sq m). It is near Choa Chu Kang Secondary School and Choa Chu Kang Park.

R'ST Research director Ong Kah Seng noted: "There were already two EC sites sold in Choa Chu Kang Grove. Sales of ECs have been severely impacted by the mortgage servicing ratio cap implemented in December 2013, as can be seen from Skypark Residences and Waterwoods' sluggish sales in 2014."

He added that the sluggish sales means there will be outstanding stock carried over into next year, so developers tendering for sites this year will factor in the risks of competition next year.

Mr Ong expects five bids, with the top one at $320 to $350 psf ppr. The tender closes on Sept 4.

He said: "The EC site is unlikely to receive strong bidding interest as there are already two EC projects in the pipeline in Choa Chu Kang in the coming few months.

"Also, it seems buyers' interest in new ECs has turned more realistic and cautious after the mortgage servicing ratio cap (was implemented)."

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[4wheels]

these 2 sites walking distance to Prata shop at Jalan kayu! Of course no river to see such as the riverbank or rivertree!