URA releases two residential sites for sale

[reporter2]

http://www.straitstimes.com/business...sites-for-sale

URA releases two residential sites for sale

Nov 30, 2016

Perumal Road site, on confirmed list, expected to draw stronger interest than reserve list site in Toh Tuck Road

Wong Siew Ying


The Urban Redevelopment Authority (URA) yesterday released for sale two sites which together can yield about 525 residential units.

Analysts expect stronger interest in one site, in Perumal Road, with room for 200 units along with commercial space on the first floor.

The 3,848 sq m site with a maximum gross floor area (GFA) of 16,161 sq m is being launched for tender under the confirmed list.

The Perumal Road site is near Farrer Park MRT Station and commercial amenities such as City Square Mall and Mustafa Centre within the Little India Historic District.

Schools in the area include Farrer Park Primary, Hong Wen and St Joseph's Institution Junior.

The second site, in Toh Tuck Road, is on the reserve list, so it goes to tender only when a developer commits to a minimum bid price acceptable to the Government.

Both are 99-year leasehold sites and are being offered under the Government Land Sales (GLS) Programme for this half of the year.

The Toh Tuck Road site, able to yield about 325 units, has a maximum GFA of 26,210 sq m on a plot that spans 18,721 sq m.

It is in an established residential area, and is near the Bukit Batok Nature Park and Bukit Timah Nature Reserve, as well as schools such as Pei Hwa Primary and Ngee Ann Polytechnic.

Analysts expect the Perumal Road plot to be more appealing to developers, owing to its "petite size", city fringe location and proximity to an MRT station.

"Developers are likely to bid actively and fairly aggressively for this well-located site... I'll expect seven to 10 bidders," said R'ST Research director Ong Kah Seng.

PropNex Realty told The Straits Times it expects 10 to 15 bids for the Perumal Road plot, taking its cue from the tender for a nearby Sturdee Road plot last March, which attracted a total of 16 bids.

Ms Christine Li, research director at Cushman & Wakefield, expects the site to command a premium, given its better attributes, but noted: "This price premium could be dampened due to its next-door proximity to Sri Srinivasa Perumal Temple, which might result in increased noise levels during religious festivities."

The site is expected to fetch $280 million to $295 million (or $800 to $850 psf per plot ratio); while the Toh Tuck Road plot could go for $210 million to $225 million ($750 to $800 psf ppr), said Ms Li.

Real estate firm OrangeTee said the Toh Tuck Road parcel could attract five to 10 bids, should the site be triggered for sale.

"The site should see relatively good demand from developers if it is activated, in view of developers' hunger for land and the dearth of new launches in the area," noted OrangeTee head of research & consultancy Wong Xian Yang.

The URA said the tender for the land parcel in Perumal Road will close at noon on Jan 10.

[reporter2]

http://www.businesstimes.com.sg/real...erumal-rd-site

Good demand expected for Perumal Rd site

By Lee Meixian

[email protected]

@LeeMeixianBT

Nov 30, 2016


THE Urban Redevelopment Authority (URA) on Tuesday released two sites, one at Perumal Road and another at Toh Tuck Road, for sale under the second half 2016 Government Land Sales (GLS) programme.

The residential with first-storey commercial site at Perumal Road was launched for sale under the Confirmed List, while the residential site at Toh Tuck Road is on the Reserve List. The two sites can yield about 200 and 325 units respectively. The tender for the site at Perumal Road will close at noon on Jan 10, 2017.

Cushman & Wakefield research director Christine Li expects the Perumal Road site to fetch S$280 million to S$295 million, or S$800 to S$850 per square foot per plot ratio (psf ppr), given its "superb" transport connectivity and location right beside Farrer Park MRT station.

There is also accessibility to the Central Expressway and Pan Island Expressway for private transport, as well as commercial amenities such as City Square Mall, Mustafa Centre, Farrer Park Hospital and Medical Centre, and the upcoming Centrium Square.

"The Perumal Road site will face competition from the nearby Sturdee Residences, which was launched in April 2016 and is 63.6 per cent (194 out of 305 units) sold as at Nov 2016 at a median price of S$1,615 psf based on caveats lodged.

"As the Perumal Road site is significantly closer to Farrer Park MRT station and the other commercial amenities, it is likely to command a slight price premium. However, this price premium could be dampened due to its next-door proximity to Sri Srinivasa Perumal Temple, which may result in increased noise levels during religious festivities. Accordingly, the Perumal Road units could be priced in the range of S$1,600 to S$1,700 psf on average," she said.

R'ST Research director Ong Kah Seng expects 7 to 10 bidders for the Perumal Road site, and 5 to 8 bidders for the Toh Tuck Road site, given the latter's lack of retail offerings nearby.

A site in the Reserve List is launched for tender upon successful application by a developer, while Confirmed List sites are launched according to schedule, regardless of demand.

Separately, JTC on Tuesday also launched one Confirmed List site at Tampines Industrial Drive (Plot 1) and one Reserve List site at Tuas South Link 3 (Plot 24) under the second half 2016 Industrial GLS programme.

The 0.53-hectare Tampines Industrial Drive (Plot 1) site is zoned for Business-2 development and has a 20-year tenure with a maximum permissible gross plot ratio of 1.4. The tender closes at 11am on Jan 24, 2017.

The 0.47-hectare Reserve List site at Tuas South Link 3 (Plot 24) is zoned for Business-2 development and has a 20-year tenure with a maximum permissible gross plot ratio of 1.4.