Two HDB residential sites to be sold by public tender
Published April 24, 2007
Two HDB residential sites to be sold by public tender
The sites in Bishan, Dakota Crescent attract minimum committed bids
By ARTHUR SIM
TWO Housing & Development Board (HDB) residential sites on the government's reserve list have attracted minimum committed bids and will now go on sale by public tender.
A 235,897.3-square-foot site at Bishan Street 22/25 - with a plot ratio of 3.5 - has drawn a minimum committed bid of $194 million or $235 per square foot per plot ratio (psf ppr).
And a 124,876.3-sq-ft site at Dakota Crescent, Geylang S5 - with plot ratio of 3.5 - has drawn a minimum committed bid of $115.8 million or $265 psf ppr. When the sites are eventually awarded, they will be the first solely private residential sites sold since April 2002 when NTUC Choice Homes and Chip Eng Leong Enterprise won the tender for a site in Ang Mo Kio for $244 psf ppr. NTUC Choice Homes did win an HDB commercial/residential site next to Yew Tee MRT Station for $308 psf ppr in September 2005, while a Guthrie-Lee Kim Tah-TMW consortium won an HDB commercial/residential site at Jurong West for $329 psf per two months earlier.
Colliers International director for investment sales Ho Eng Joo reckons projects on the two latest sites will attract HDB upgraders rather than investors.
He estimates the Bishan site could go for $260-$290 psf ppr and the Dakota Crescent site could fetch a higher $300-$350 psf ppr because it is nearer the city.
He sees breakeven cost will at more than $500 psf and $600 psf respectively.
Savills Research estimates the Bishan Street 22/25 site could go for $300-$400 psf ppr or $248 million-$330 million and the Dakota Crescent site for $275-$350 psf ppr or $120-$153 million.
Savills executive director (residential) David Neubronner said the Bishan site, close to several good schools and facing Bishan Park, could attract developers like NTUC Choice Homes, Far East Organization and Wing Tai, while the Dakota Crescent site, which is on the fringe of prime areas in eastern Singapore, could attract the likes of CapitaLand, Guocoland, Hong Leong and Far East Organization.
'We would also not be surprised if they team up like what we saw happening at Casa Merah,' Mr Neubronner said.
He also thinks that it is possible the same developer triggered the sale of both sites.
Savills expects prices of mass-market condominiums to rise 8-10 per cent this year.
Re: Two HDB residential sites to be sold by public tender
Tender for 2 residential sites to be launched in 2 weeks
Posted: 23 April 2007 2349 hrs
SINGAPORE : Developers have committed to bidding for two residential sites under the reserve list system.
The Housing and Development Board (HDB) said it has received applications for the sites in Bishan and Geylang.
A developer has committed to bidding at least S$194 million for the first parcel at Bishan Streets 22 and 25.
The site, spanning some 22,000 square metres, can generate a maximum permissible gross floor area of about 76,000 square metres.
The HDB has also received a bid, amounting to nearly S$116 million, for a second site at Dakota Crescent in Geylang.
This parcel spans about 11,600 square metres and can generate a maximum permissible gross floor area of about 40,000 square metres.
The 99-year leasehold sites are slated for condominium housing.
Under the reserve list system, a site will be put up for tender only if a developer commits to bidding at a price acceptable to the government.
The tender is expected to be launched in two weeks. - CNA/ms
