Two condo sites likely to draw keen interest

[reporter2]

http://www.straitstimes.com/business...-keen-interest

Two condo sites likely to draw keen interest

Oct 1, 2015

Rennie Whang


Keen interest is expected for the first two private residential sites released under the Government Land Sales (GLS) programme for this half of the year.

A 0.84ha condo plot in Alexandra View next to Redhill MRT station is on the confirmed list and can yield 400 homes, while a 0.73ha condo site in Jalan Kandis in Sembawang is on the reserve list and can accommodate 115 homes.

Development sites have been in short supply in recent GLS programmes, so property firms will be quick to run the rule over these offerings.

"Developers are on the lookout for sites, given the current pull-back on residential sites for sale on the GLS," said Mr Desmond Sim, CBRE research head for Singapore and South-east Asia.

"Many developers do not have much land in Singapore and need continuity in their businesses."

The number of new residential units made available via the GLS programme for this half of the year across confirmed and reserved sites is the lowest since the first half of 2007.

The small sizes of the plots released yesterday present an affordable quantum for developers, Mr Sim added, while the fewer units they can yield means a potential project will be easier to sell out.

The Alexandra View site is attractive for its proximity to the MRT station and the provision of commercial use on the first storey, said Mr Ong Teck Hui, JLL national research director.

But bidders will be cautious about the large number of unsold units in the area, he noted, forecasting the top bid to come in at $850 to $1,050 per sq ft per plot ratio (psf ppr), or $376.5 million to $465.1 million.

There were 179 unsold units in Alex Residences and 385 in The Crest as at the end of August, while the upcoming Principal Garden has 663 units.

Highline Residences, which is a bit further, near Tiong Bahru MRT station, has 351 unsold units.

Still, a successful bidder would have the luxury of time to wait for the market to turn as any project developed on the site will be completed only in four to five years, said CBRE's Mr Sim.

The Jalan Kandis site is in a landed residential area with few condos, noted Mr Nicholas Mak, SLP International executive director.

The small plot could attract small- and medium-sized developers and, if triggered for sale, could go for $400 to $452 psf ppr, or $42.5 million to $48 million.

However, a major disadvantage is its distance from the Sembawang and upcoming Canberra MRT stations, and other amenities, he added.

"In view of the slow primary market sales, it is unlikely for this site to be triggered for tender in the next 12 months."

[reporter2]

http://www.businesstimes.com.sg/real...sembawang-park

Keen competition seen for sites near Redhill MRT, Sembawang Park

Analysts expect up to 12 bids for Redhill plot and up to 10 for Sembawang site; with winning bids pegged at S$800-1,050 psf ppr and S$400-550 psf ppr respectively

By Kalpana Rashiwala

[email protected]@KalpanaBT

Oct 1, 2015


THE launch of a 99-year leasehold site next to Redhill MRT Station on Wednesday is expected to draw strong interest, given the pullback in the Government Land Sales Programme and developers' desire to replenish their land bank.

The site is designated for private housing development with commercial use on the first storey. The Urban Redevelopment Authority said that the 0.84-hectare site can generate about 400 private homes. The tender for the site will close on Nov 12.

This is the first confirmed list site to be launched under the Ministry of National Development's second half 2015 Government Land Sales Programme.

URA on Wednesday also made available for application on the reserve list a 0.7-ha plot along Jalan Kandis near Sembawang Park that is estimated to yield 115 private homes.

Desmond Sim, head, CBRE Research, Singapore and South East Asia, expects keen competition for both plots. "The size of the two plots presents developers a relatively affordable lump-sum quantum; we expect each plot to attract no less than 10 bidders . . ."

Property consultants polled by BT predicted 6-12 bids for the site next to Redhilll MRT Station, which is located along Alexandra View. The forecasts of the winning bid varied, from S$800 per square foot per plot ratio to S$1,050 psf ppr.

The key selling points of this site include its proximity to an MRT station in a city-fringe location, and surrounding amenities. The developer will have to build commercial space at the first storey of the project and hence have an opportunity to sell retail units, which will fetch a higher per square foot price compared with the predominant residential component.

Still, market watchers say that bidders would have to be mindful of the significant supply of unsold private housing units in the vicinity. JLL national director Ong Teck Hui highlighted that based on August developer sales data provided by URA, there are 179 unsold units in Alex Residences and 385 in The Crest.

"Principal Garden, which is yet to be launched, will have 663 units. Slightly further away and near to Tiong Bahru MRT Station is Highline Residences, with 351 unsold units."

Recent transactions of units at Alex Residences and The Crest were around $1,700 psf while the last land parcel sold in the vicinity was that of Principal Garden in April 2014 at $821 psf ppr but that was much further away from Redhill Station. The Dundee Road site near Queenstown Station fetched $871 psf ppr in June 2015, added Mr Ong.

Wong Xian Yang, OrangeTee.com senior manager, research and consultancy, suggested that while the substantial unsold inventory in the area and dim market sentiment should temper bids, some defensive bidding can be expected from those who are developing condos in the locale.

URA has indicated the maximum height for the development at 13 metres for part of the site and 163 metres for the rest of the land parcel. Mr Sim of CBRE estimates that these height limits translate to five storeys and 40-45 storeys respectively.

SLP International executive director Nicholas Mak suggested that some units on lower floors facing the MRT station would be affected by noise from the trains while units facing the station platform may also suffer some loss of privacy.

For the Jalan Kandis site, property consultants are generally expecting 6-10 bids; the winning bid is forecast to come in at around S$400-550 psf ppr. "This will be the first residential apartment plot in a predominantly landed area and the winning bidder should enjoy a first-mover advantage," said Mr Sim.

URA has stipulated a three-storey height limit for part of the site and a seven-storey limit for the rest of the site. R'ST Research director Ong Kah Seng, said: "A low-rise project in a somewhat quaint location near a park may appeal to some home buyers who would like to live in a quiet environment - but the location is still considered pretty far-flung and inconvenient for most people."

Mr Wong of OrangeTee.com said that a future project on the site would probably attract car owners who are buying a home for their own occupation.

[soonhlim]

The Alexandra site certainly looks attractive.