http://www.straitstimes.com/premium/money/story/5-sites-sale-can-yield-3600-homes-20130618
5 sites on sale can yield 3,600 homes
2 EC tenders to close on same day in bid to moderate bids
Published on Jun 18, 2013
By Cheryl Ong
FIVE government sites that could yield up to 3,600 homes in all were put up for sale yesterday with tenders for the two executive condominium (EC) sites closing on the same day next month.
The move by the Urban Redevelopment Authority (URA) to have the tenders for land with similar characteristics close together was revealed by The Straits Times in March.
The aim is to prevent the top tender for one site being used as a benchmark for a second similar or neighbouring site as it may lead to more aggressive bids.
The URA said back then: "Many have suggested that batching land tenders may help to moderate tender bids and hence subsequent property prices."
Apart from the EC sites in Punggol Drive and Yuan Ching Road, a private home plot in Mount Sophia that many residents had hoped would be preserved and two mixed-use parcels, at Yishun Avenue2 and Meyappa Chettiar Road, were released. All are on 99-year leases.
Four of the five sites are on the confirmed list of the Government Land Sales programme, while the land in Meyappa Chettiar Road is on the reserve list.
The tender results for the sites will be closely watched as "all are rather attractive with their special characteristics", said ERA Realty key executive officer Eugene Lim.
The 24,065 sqm EC site at Punggol Drive is expected to draw strong interest from developers due to its proximity to MyWaterway@Punggol.
R'ST Research director Ong Kah Seng noted: "EC buying interest in Punggol is highly supported by the waterway-living concept, and there will still be buyers who appreciate ECs here so long as they are priced attractively."
Experts expect five bids for the site, with the top one between $310 and $340 per sq ft per plot ratio (psf ppr), estimated Mr Ong.
That would price the site at up to $299 million. About 825 units can be built on the site, with sales prices expected at $700 to $740 psf.
The EC plot at Yuan Ching Road is on 20,213 sqm and also tipped to draw strong interest, with up to 10 bidders expected given the shortage of such sites in the Jurong area, said Ms Alice Tan, associate director and head of research at Knight Frank Singapore. The site could yield about 610 units.
Westmere, which received Temporary Occupation Permit status in 1999, was the last EC launched there, added OrangeTee's head of research and consultancy, Ms Christine Li.
Mr Lim also noted that the site is near facilities such as the JCube, Jem and Westgate malls in the upcoming Jurong Gateway commercial hub.
The top bid is tipped to come in at $320 to $350 psf ppr, with the selling price of the eventual development in the range of $730 to $780 psf.
Yesterday's land release included some plum spots on the private property front.
The Mount Sophia site, which appeals because of its central location, is expected to draw about 10 to 15 bids, said Ms Tan.
"(It) is located within a short walking distance of Dhoby Ghaut MRT Interchange and the newly-renovated Plaza Singapura," she noted.
The 23,771 sqm site, which can yield about 500 units, also has historical significance as it once accommodated the Methodist Girls' School (MGS) at 11 Mount Sophia, Trinity Theological College at 7 Mount Sophia and the Nan Hwa Girls' School.
Some had urged that the site remain as an arts enclave, while some MGS old girls wanted all the school buildings on the site to be conserved.
Developers are also expected to be keen on the 41,073 sqm mixed-use site at Yishun Avenue2, due to its location next to Yishun MRT station and Northpoint Shopping Centre.
"Mixed developments next to MRT stations are a proven success formula," noted Mr Lim, adding that upgraders from Housing Board flats in Yishun would be attracted to the new development.
Developers will be attracted to the mixed-use site at Meyappa Chettiar Road by its proximity to Potong Pasir MRT station and the nex and City Square malls.
Land on the reserve list is put up for tender once a developer makes an acceptable initial offer.
Mr Ong noted that projects in the area scheduled for completion over the next few years include Nin Residence, 18 Woodsville, Sant Ritz and Sennett Residence.
The commercial space that can be developed on the Meyappa Chettiar Road site will cater to the needs of the new residents, adding to the amenities in Potong Pasir, he said. The site can accommodate about 765 units.
Tenders close on July30 for both EC sites and on Aug7 for the Mount Sophia plot.
Bids for the Yishun Avenue2 site must be in by Sept5.
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