Residential plot at Tampines put up for sale

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Published February 3, 2010

Residential plot at Tampines put up for sale

Fourth such site this year seen fetching between $300 and $460 psf ppr

By UMA SHANKARI


A RESIDENTIAL plot at Tampines was put up for sale by the government yesterday - the fourth so far this year.

In January, the government released three residential sites - including two for executive condominiums - for sale through its confirmed list.

Interest in the latest plot, at the junction of Tampines Avenue 1 and Avenue 10, is expected to be strong. Analysts say it could fetch anything between $300 and $460 per sq ft per plot ratio (psf ppr).

The site was first put up for tender in June 2008. But the government decided not to award it then because the sole bid of $118 psf ppr was deemed to be too low.

Bids will certainly be higher this time, analysts say. CB Richard Ellis (CBRE) reckons the site could fetch $300-330 psf ppr, while DTZ has a more positive estimate of $350-400 psf ppr. Others put the figure as high as $500 psf ppr.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said: 'Assuming the developer launches the new condo on this site in a buoyant market in 2011, a reasonable land price could range from $410-$460 psf ppr. But one or two very bullish bidders could bid as high as $500 psf ppr.'

The site area is about 3.2 ha and, with a maximum gross floor area of 717,500 sq ft, can yield about 600 housing units. It is the biggest of the eight residential sites up for sale in the first half of this year.

Two new projects at Bedok Reservoir Road - Waterfront Waves and Waterfront Key - are being marketed at $700 and $760 psf respectively, said Li Hiaw Ho, executive director OF CBRE Research.

And in the resale market, units in The Tropica, Aquarius By The Park and Baywater were sold at between $640 and $670 psf in the fourth quarter of 2009, he added.

'Based on these comparables, we expect a new 99-year leasehold project in this location may fetch around $720-$730 psf,' Mr Li said. 'This will translate to a land price of $215-$237 million, or $300-$330 psf ppr, for the site.'

DTZ's South-east Asia research head Chua Chor Hoon said that homes on the development could go for between $750 and $800 psf.

In a statement, the Urban Redevelopment Authority said that another four private residential sites will be released for sale via the confirmed list in March and April.

Together, these eight sites - including the newly launched parcel at Tampines - can yield about 2,925 residential units. This is close to the highest-ever potential supply of about 3,000 units - in the H2 2007 government land sales (GLS) programme - from the confirmed list since the reserve list/confirmed list system started in the second half of 2001.

In addition, there are another 18 residential sites on the reserve list - including three executive condominium plots and two mixed-use sites.

'The total supply quantum of 10,550 units from the confirmed list and reserve list for the H1 2010 GLS programme is the highest in the history of the GLS programme,' URA said.

It added: 'The government will continue to monitor the property market closely. If necessary, more supply can be injected via the second half 2010 GLS programme to ensure property prices are in line with economic fundamentals.'

http://www.straitstimes.com/Money/St...ry_485721.html

Feb 3, 2010

Leasehold Tampines site for tender

By Joyce Teo


A NEW condominium with about 600 units could be built on a 3.2-ha site facing Bedok Reservoir that was put up for tender to developers yesterday.

CBRE Research executive director Li Hiaw Ho said upgraders from HDB estates in Bedok and Tampines are likely to take a keen interest in any project that is eventually built on the site.

The 99-year leasehold plot at the junction of Tampines 1 and 10 may have a maximum gross floor area of 66,655 sq m, said the Urban Redevelopment Authority.

It is the fourth residential site launched for sale on the confirmed list so far this year. Confirmed list sites are tendered out on scheduled dates, without the need for developers to indicate their interest.

These sites were brought back recently after a suspension to allay fears of a shortage of homes. The 10,550 units to be made available for sale in the first half of this year will be the highest number in the history of the government land sales programme.

The Tampines site is next to The Tropica condo and about five to 10 minutes' drive from Tampines Central and Tampines MRT station. It was first tendered out in 2008, when the market was slowing. It attracted just one bid - a lower-than-expected offer of about $118 per sq ft per plot ratio, which was rejected. At the time, property consultants had tipped bids of $200 to $300 psf ppr.

This time, consultants are more optimistic, given the improved market.

DTZ expects to see bids of $350 to $400 psf for the land, with the eventual selling price of around $750 to $800 psf on average.

'Assuming the developer launches the new condo on this site in a buoyant market in 2011, a reasonable land price could range from $410 to $470 psf ppr ($294 million to $337 million),' said Ngee Ann Polytechnic lecturer Nicholas Mak.

Mr Li said a project on the Tampines site may fetch about $720 to $730 psf, translating to a land price of $215 million to $237 million, or $300 to $330 psf ppr.

This is based on nearby comparable projects. The tender closes on March 16.