URA gives sales details for 2 Reserve List sites

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Published November 20, 2008

URA gives sales details for 2 Reserve List sites

Dakota Crescent plot is for residential project, Seletar Rd site for mixed development

By ARTHUR SIM


(SINGAPORE) The Urban Redevelopment Authority (URA) has released sales details for two Reserve List sites - at Dakota Crescent and Seletar Road.

The Dakota Crescent plot is for a residential development. The Seletar Road site is for a mixed commercial and residential development.

The 1.7 ha Dakota Crescent plot is near the future Singapore Sports Hub and the Dakota Crescent MRT station, which is under construction.

The 2.1 ha Seletar Road site is within the established residential area at Seletar Hills and near the future Seletar Aerospace Park.

Knight Frank expects that at today's auction the Dakota Crescent site could fetch bids of $170-$200 per square foot per plot ratio (psf ppr) and the Seletar Road could see interest at $120-$150 psf ppr.

But Knight Frank's head of research and consultancy Nicholas Mak said: 'Even with the favourable location, the probability that developers will trigger the Dakota Crescent site for tender is slim.

If triggered and launched for sale, it is expected that the launch price for the proposed development will be $650-$680 psf.'

Mr Mak reckons there will be limited interest in the Seletar Road site. 'Developers are generally very cautious and are seeking well-located sites with significant growth potential,' he said.

A nearby comparable for the proposed development is Seletar Springs Condominium. Mr Mak believes the average selling price for new units in a future condominium could be $530-$570 psf if launched in 2009 or later.

Several Government Land Sale sites have not been awarded this year, reflecting poor market sentiment. Sites at Tampines Avenue 1/Avenue 10, Ten Mile Junction and Westwood Avenue were not awarded because bids were too low. More recently, an executive condominium site in Punggol failed to attract a single bid.

DTZ Research senior director Chua Chor Hoon said: 'The property market has worsened a lot more since the Lehman Brothers' collapse. It is unlikely there would be any trigger for these sites until sentiment improves and the tight credit situation eases.'

Savills Singapore director of marketing and business development Ku Swee Yong said he does not expect to see any site triggered until Q2 2009 when the global credit crunch could start to ease.

'Developers who are still keen would need to be backed up by banks with credit for the land, and then the projected construction cost,' he said.

http://www.straitstimes.com/Money/St...ry_304494.html

November 20, 2008 Thursday

Two sites up for sale amid weak market


THE Urban Redevelopment Authority (URA) is testing the waters by offering two 99-year leasehold sites - one residential and one commercial-residential - for sale.

The sites have been placed on the reserve list, meaning they will be tendered out only if developers indicate sufficient interest.

However, property consultants doubt they will attract much, if any, interest from developers, given the weak market.

Earlier this week, monthly URA data showed that developers managed to sell just 112 units last month, a level comparable to the Sars period in 2003. It also showed that about 50 home buyers did not complete deals last month.

The first site, at Dakota Crescent, is for a residential project with a gross floor area of 647,599 sq ft. It is near the future Singapore Sports Hub and upcoming Dakota MRT station.

The second, at Seletar Road, is for a mixed commercial and residential development with a gross floor area of 226,042 sq ft. It is in a residential area at Seletar Hills near the future Seletar Aerospace Park.

Early this month, the Government cancelled two of three tenders of confirmed sites for the rest of the year. A tender for an executive condo in Punggol went ahead, but this site attracted no bids. With the market hit by the global financial crisis, developers are taking a breather from land banking, said a consultant.

'The current cautious mood and slow sale activity in the residential market have diminished developers' appetite for development sites,' said Mr Nicholas Mak, Knight Frank's director of research and consultancy.

He said the chances of developers expressing interest to trigger the launch of Dakota Crescent are slim, despite its good location.

He estimates the launch price for a proposed development with up to 550 units at Dakota Crescent at $650 to $680 per sq ft (psf), or a land price of roughly between $170 and $220 psf per plot ratio. The Seletar plot, he said, is estimated at $120 to $150 psf per plot ratio. A condo there could fetch prices of $530 to $570 psf if launched next year and beyond, said Mr Mak.

JOYCE TEO