Published March 14, 2006

Tanah Merah site up for sale
$130m bid triggers URA release of 2.2 hectare plot from reserve list


THE Urban Redevelopment Authority (URA) yesterday launched the sale of a 2.19 hectare plot of residential land at Tanah Merah Kechil Avenue.

This comes two weeks after a bid for it at $130 million triggered the site's release from the Reserve List under the Government Land Sales Programme for the first half of this year.

The site was first made available for sale through the Reserve List system in April last year.

Located near the Tanah Merah MRT Station, the site has a 99-year leasehold tenure. With a gross plot ratio of 2.8, the site comes with a maximum gross floor area of approximately 659,343 square feet.

The URA said the winning developer could build an estimated 535 units on the site. There is a maximum height of between 49 and 52 metres above mean sea level.

'The tender for the site at Tanah Merah Kechil Avenue will attract major developers who have the experience in developing large-scale mass market residential projects,' said CB Richard Ellis's executive director of investment properties, Soon Su Lin.

'In 2005, there were no new launches of sizeable 99-year leasehold projects in the Bedok, Tampines and even Pasir Ris areas, priced at affordable levels and that cater largely to HDB upgraders or first-time home buyers. There should be some pent-up demand for affordable homes with access to MRT stations in the East of Singapore.'

Going by the minimum price of $130 million, the site works out at about $212 psf per plot ratio. Property analysts had earlier predicted bids from $200 to $250 psf.

The closing date for the site's tender is April 11, with the eventual winner based on the tendered land price only.