$110m bid committed, so Hougang site up for tender

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Published April 8, 2010

URA to launch residential site in Hougang

Tender for the plot on the reserve list of the H12010 GLS programme will be launched in 2 weeks

By UMA SHANKARI


THE Urban Redevelopment Authority (URA) has accepted an application from a developer to tender a residential site at Hougang Avenue 2.

The 99-year-leasehold plot is on the reserve list of the first-half 2010 government land sales (GLS) programme.

The tender will be launched in two weeks.

URA said yesterday it has received a minimum bid of $109.9 million for the 3.02ha site from an unnamed developer.

This works out to $241 per square foot per plot ratio (psf ppr).

The site, which has a maximum gross floor area of 455,152 sq ft, is slated for a low-density condominium, flats or landed housing.

Analysts say that assuming that a low-rise condominium of around 400 units is be built, the top bid could be $310-$350 psf ppr.

This works out to $141-$159 million for the site.

Alternatively, around the same land price about 200 cluster housing units can be considered.

CB Richard Ellis said recent launches in the area include the 81-unit Residences Botanique and the 33-unit Wembley Residences, where homes sold on average for $990 psf and $850 psf respectively in the past six months.

Freehold terrace and semi-detached houses in new cluster projects in the neighbourhood, such as Jansen 8, Water Villas and Verdana Villas, were sold at $1.8 million to $3 million.

URA said yesterday that another 13 sites on the reserve list of the first-half 2010 GLS programme can be triggered for sale - including two executive condominium sites and two mixed-use sites where 5,885 private residential units can potentially be built.

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URA to launch tender for reserve list site at Hougang Avenue 2 in two weeks

By Julie Quek | Posted: 07 April 2010 2120 hrs


SINGAPORE: The Urban Redevelopment Authority (URA) said it has accepted an application to put up a residential site at Hougang Avenue 2 for public tender.

It said a developer has committed to bid at least S$109.9 million for the land parcel.

The site is one of those on the Reserve List of the first half of this year's Government Land Sales Programme.

It's located within an established private residential estate and adjacent to Hougang HDB Town.

The 3.02 hectare land parcel with a maximum gross floor area of 42,285 square metres will be used to develop low density condominium, flats or landed housing development.

The URA will launch the public tender for the site in about two weeks.

The tender period for the land parcel will be in about a month.

The launch date will be announced later.

The land parcel was made available for sale through the Reserve List System on February 25.

Under the system, the government will put up a Reserve List Site for public tender if it receives an application from a developer who commits to bid for the site at or above the minimum price which is acceptable to the government.

The URA said 13 sites remain on the Reserve List of the first half 2010 Government Land Sales Programme that can potentially be triggered for sale.

These include two EC sites and two mixed-use sites where 5,885 private residential units can potentially be built. In addition, there are another eight residential sites in the Confirmed List of the first half 2010 GLS Programme that can yield another 2,925 units.

The GLS Programme for the first half of 2010 has therefore a total potential supply of 10,550 units, from both the Confirmed and Reserve Lists.

CBRE research executive director Li Hiaw Ho noted that recent new apartment and landed projects launched in the vicinity were all freehold projects such as Residences Botanique and Jansen 8.

"Assuming that a low-rise condominium of around 400 units will be built, the subject site is likely to fetch a land price of S$140 million to S$160 million. This translates to plot ratio of $310 to $350 per square foot," Mr Li said.

Alternatively, based on the same price, around 200 units of cluster houses can be considered for strata landed housing development, he added.

The site is about 10 minutes' drive from both Hougang and Kovan MRT stations.

It is accessible via a network of roads such as Central Expressway and Kallang-Paya Lebar Expressway.

According to Real Estate Lecturer at Ngee Ann Polytechnic, Nicholas Mak, he said: “This tender could attract six to 11 bids."

He added: "The top two to three bids could range from S$180 million to S$200 million. Mr Mak said that the most likely development that the top bidder may construct could be a five-storey condo development because he could realize the highest development potential from a non-landed project. The site Mr Mak added could potentially yield 395 to 420 condo units." - CNA/vm

http://www.straitstimes.com/Money/St...ry_511894.html

Apr 8, 2010

$110m bid committed, so Hougang site up for tender


A SITE in Hougang Avenue 2 has been triggered for tender after an unnamed developer committed to a minimum bid of $109.9 million.

The 3.02ha plot is slated for development into apartment blocks of up to five storeys in height, or landed homes of up to three storeys, and is located adjacent to Hougang HDB town.

Surrounded by mostly landed homes, it has a 99-year lease and a maximum gross floor area of 455,152 sq ft.

CBRE Research executive director Li Hiaw Ho said the site is likely to fetch a land price of $140 million to $160 million, or between $310 and $350 per sq ft (psf) per plot ratio (ppr), if a low-rise condominium of around 400 units is built.

For about the same land price, around 200 cluster houses could be considered for a strata landed housing project, he added.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the site could attract six to 11 bids, with the top two or three bids likely coming in at between $180 million and $200 million, or $395 to $440 psf ppr.

Recent launches in the vicinity include the 81-unit Residences Botanique and the 33-unit Wembley Residences, which over the past six months have fetched average prices of around $990 psf and $850 psf respectively.

The terrace and semi-detached houses in the neighbourhood's new freehold cluster projects - including Jansen 8 (10 units), Water Villas (15 units) and Verdana Villas (36 units) - were sold at between $1.8 million and $3 million, according to CBRE.

A residential site in Sengkang West Avenue was sold via the reserve list in February.

And two more sites - in Upper Changi Road North/Flora Drive and Tampines Road - as well as one executive condominium site at the junction of Sengkang East Avenue and Buangkok Drive have been triggered.