URA plot facing Bedok Reservoir up for sale

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Published June 18, 2008

URA plot facing Bedok Reservoir up for sale

Fairly good response seen with modest bids ranging from $200-$300 ppr

By KALPANA RASHIWALA


A 99-YEAR leasehold condo plot at Tampines Ave 1/10 fronting Bedok Reservoir, launched yesterday by the Urban Redevelopment Authority, is likely to draw modest bids ranging from $200 to $300 per sq ft of potential gross floor area, given tepid developer sales, property consultants say.

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Cushman & Wakefield managing director Donald Han reckoned that 'given Singaporeans' affinity for living near water, the site should see fairly good response from developers'. 'I would expect this site to fetch a fair number of bids, maybe about five,' he added.

On the other side of Bedok Reservoir, in a more choice spot, Frasers Centrepoint and Far East Organization are understood to have sold about 140 units at their Waterfront Waves condo. The average price is about $800 psf for reservoir-facing units and around $750 psf for pool-facing units.

'The Waterfront Waves project has better views all round whereas the URA site is kind of tucked in a corner,' Mr Han said.

Assuming a new condo on the latest plot can sell for about $750 psf on average, the land bids will come in at about $280-$300 psf. 'For developers to bid higher than this range, they must be confident of selling the project at above $750 psf or have a sense of controlling costs in a market where construction costs are spiralling upwards,' he added.

CB Richard Ellis director (research) Leonard Tay projected an even lower land price of around $200-$230 psf per plot ratio. He reckoned a new 99-year leasehold project on the site may fetch an average price of around $700 psf, citing resale prices for nearby completed condos, and factoring in higher construction costs.

'Current prices of units in The Tropica, Aquarius By The Park and The Clearwater are within $550 psf and $670 psf, while those at Baywater, a recently completed condominium, are around $600-$680 psf,' Mr Tay added.

Cushman's Mr Han reckoned the latest plot, which has a land area of 341,650 sq ft and a 2.1 plot ratio - the ratio of maximum potential gross floor area to land area - can accommodate a new condo with about 650 units averaging 1,100 sq ft.

URA's latest plot is next to The Tropica, developed by a Hong Leong Holdings unit and completed around 2000.

The tender for the plot closes on Aug 12. It is the penultimate plot to be launched under the first-half 2008 confirmed list of Ministry of National Development's Government Land Sales programme.

The 11th and final plot on the current confirmed list is a 'white' site at Ophir/Rochor roads. Slated for release by the end of this month, the 2.7 hectare plot will be sold with minimum office and hotel components stipulated. MND's H1 2008 GLS programme also includes 26 reserve list plots. Twenty-four of these have been available for application by developers - but not one has been triggered for sale.

The two remaining reserve plots - residential sites in Sengkang West Avenue and Sembawang Road - will be made available for application by month-end. All eyes in the property market are now on the GLS programme for H2 2008, which will be announced by the end of this month.

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June 18, 2008

Tampines residential site up for tender

Offer seen as acid test for property market after recent signs of upswing

By Joyce Teo, Property Correspondent


A NEW home site on offer in Tampines, overlooking Bedok Reservoir, could shape up as an acid test for the property market after recent signs of a revival.

The Urban Redevelopment Authority (URA) yesterday invited developers to submit bids for the 3.2ha site at the junction of Tampines avenues 1 and 10.

Some property consultants said the 99-year leasehold site's suburban location meant completed homes could command prices of up to $700 per sq ft (psf), which is slightly higher than neighbouring condominiums.

They say the land could fetch anywhere between $107 million and $165 million.

The site, with a maximum gross floor area of 66,655 sq m, is next to The Tropica condo, where caveats show recent deals were done for between $547 psf and $622 psf, or $590,000 to $1.13 million.

Other nearby condos include Aquarius By The Park, The Clearwater and the recently completed Baywater, which fetched $600 psf to $680 psf.

Mr Leonard Tay, director of research at CBRE, said: 'Based on these comparables and taking into account higher construction costs, we expect that a new 99-year leasehold project in this location may fetch prices of around $700 psf.'

This would translate to a possible land price of $200 to $230 psf per plot ratio for the site, he added.

But some others expect a more cautious response, in view of the current fairly quiet market and the risk of falling prices.

On Monday, the URA released figures showing that private home sales had rebounded from the previous months' lows. But the sales were still way below last year's figures.

Consultants such as Ms Tay Huey Ying of Colliers International said the upswing in activity could be the result of developers testing the market with launches.

Mr Ku Swee Yong, Savills Singapore's director of business development and marketing, said bids for the Tampines plot could come in as low as $150 to $180 psf per plot ratio.

At this price, the successful developer could sell the apartments for $650 psf to $700 psf, he added.

Although the site fronts Bedok Reservoir, not all the apartments will have a view of the lake, said Mr Ku.

Mr Tay said that as the site is on the north-western boundary of Tampines New Town, it is about five to 10 minutes' drive from Tampines Central and Tampines MRT station.

Residents can also head for Tampines Retail Park on Tampines Avenue 10, where Giant, Ikea and Courts are located, he added.

The tender for the Tampines site will close on Aug 12.

It is a confirmed list site under the Government's land sales programme. These sites go on sale on specified dates.

The Government also sells land under a reserve list, in which sites are put up for sale only after developers have indicated interest by committing to a minimum bid.

This month, the Government is expected to announce its land sales programme for the second half of the year.

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URA launches Tampines residential site for sale by public tender

Posted: 17 June 2008 1552 hrs


SINGAPORE: The Urban Redevelopment Authority has launched a residential site at Tampines Avenue 1/Avenue 10 for sale by public tender.

The land parcel is one of four new residential sites to be offered for sale as a confirmed site under the Government Land Sales Programme for the first half of this year.

The 99-year leasehold site spans about 3.2 hectares. It will have a maximum permissible gross floor area of 66,655 square metres.

The land also fronts the Bedok Reservoir, offering a panoramic view of the lake.

Consultants from real estate services firm CB Richard Ellis expect units in the new development to sell for around S$700 per square foot.

This will translate to a possible land price of around S$200-$230 per square foot per plot ratio for the site.

The tender will close at noon on August 12. - CNA/ir