http://www.straitstimes.com/Money/St...ry_799382.html
Five new sites for homes released
2 city fringe plots likely to draw strong interest if triggered for tender
Published on May 16, 2012
By Esther Teo, Property Reporter
FIVE residential sites able to yield about 2,100 homes were released by the Government yesterday, the same day new figures were made public showing that strong demand for new homes continues unabated.
One of the sites at Pheng Geck Avenue is a confirmed list site. The other four - at Tai Thong Crescent, Kim Tian Road, Prince Charles Crescent and Sengkang West Way - are reserve list sites.
Confirmed list sites go on sale regardless of interest, while those on the reserve list are put up for tender only if developers make an acceptable initial offer.
Experts note the latest release of sites comes off the back of strong new home sales, with a whopping 9,000 private homes sold in the first four months of the year.
April was the strongest month of sales in nearly three years with 2,487 new private homes sold.
The experts are divided on which sites might receive the most interest, but some say that centrally located sites are increasingly getting developers' attention as the price gap between mass market and higher-end homes narrows.
Mr Nicholas Mak, head of research at SLP International Property Consultancy, said the Kim Tian Road and Prince Charles Crescent site near Redhill MRT station are likely to be the most attractive. They are among the largest of the five sites, able to boast 490 and 590 homes respectively.
He expects seven to 12 bidders with top bids forecast to come in at $580 to $650 per sq ft (psf) per plot ratio (ppr) if the site is triggered for sale, which translates to about $310 million.
R'ST Research director Ong Kah Seng agreed that the Kim Tian Road site is likely to be triggered soon due to its central location. He expects bids to come in at between $750 and $800 psf ppr with the project priced at $1,500 to $1,700 psf when launched.
The city fringe region is an attractive segment as it offers a comfortable compromise. It is more affordable than city centre homes yet more tried and tested in terms of investment and leasing demand when compared with suburban homes, he added.
'There has also been increasing awareness of 'underpricing' for centrally located homes in comparison to suburban condos and so developers who have bigger budgets to develop homes in the city fringe areas might consider such options to mitigate risks,' Mr Ong said.
Tai Thong Crescent was also flagged by some experts as likely to attract keen interest as the first floor of the project can be used for commercial purposes.
Credo Real Estate executive director Ong Teck Hui noted that there has been good demand for mixed-use sites, with several of such sites sold in collective sale deals recently. He expects 10 to 15 bids with a top bid of $680 to $780 psf ppr if the site is triggered for tender.
Owing to the ample supply of homes in the north-east of Singapore, however, the Sengkang West Way site is the least likely to be triggered, experts say.
A Knight Frank report said it is 'less desirable due to the distance from any MRT or LRT station and has limited amenities'.
The only confirmed list site, on Pheng Geck Avenue near Potong Pasir MRT station, was launched for sale yesterday.
Experts expect 'strong interest' due to its small size and good location.
Mr Lee Sze Teck, senior manager of research and consultancy at Dennis Wee Group, said bids could range from $105 million to $115 million, or $550 to $650 psf ppr, with up to 15 bidders taking part.
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