Choa Chu Kang residential parcel up for sale

Published March 28, 2008

Choa Chu Kang residential parcel up for sale

Analysts think the 99-year leasehold site may fetch $230-$270 psf ppr

By UMA SHANKARI

THE Urban Redevelopment Authority yesterday launched a 1.9-hectare residential site in Choa Chu Kang Drive for sale by public tender.

Analysts reckon the 99-year leasehold site could fetch $230-$270 per square foot per plot ratio (psf ppr), or $131.7 million to $154.6 million in all.

The site has a maximum gross floor area of 572,600 sq ft.

It is within walking distance of Choa Chu Kang MRT station and should prove attractive to developers, analysts say.

'Judging by the healthy response to recent government residential land sale tenders in West Coast Drive and Yishun, this site should attract a fair number of bidders - possibly two to three genuine bids and two to three other opportunistic bids,' said Tay Huey Ying, director of research and consultancy at Colliers International.

'Bidders may include Far East Organization, Allgreen and Centrepoint,' she said.

Going by the response to nearby Yew Tee Residences when it was launched last year, a project on the latest site should be popular with mass-market buyers, she feels.

Ku Swee Yong, director of marketing and business development at Savills Singapore, agrees that the project will be popular: 'Mass market private homes are still in good demand because of the strong HDB market, where many sellers are getting large amounts of cash-over-valuations (COVs) for their flats. There is also a ready pool of HDB upgraders in Choa Chu Kang.'

Colliers' Ms Tay says that at a bid price of $230-$250 psf ppr, the breakeven price will come to about $560 to $580 psf. According to her, 'Developers would be looking to sell the new units at prices ranging between $620 and $650 psf'.

Units in The Warren condominium have transacted at an average of $570 psf between July 2007 and now, while units in Yew Tee Residences are changing hands at an average of $535 psf, she said.

Mr Ku, on the other hand, believes units on the upcoming site could go for about $700 psf. Some 500-550 homes can be built on the land, he said.

The plot is one of four new residential sites to be launched for sale as confirmed sites under the government land sales programme for the first-half of 2008.