Residential site off Bartley Road up for sale under GLS

Plot with 99-year lease occupies area of 4,666.6 sq m; maximum gross floor area is 9,800 sq m

Fri, Aug 30, 2019


A RESIDENTIAL site at Jalan Bunga Rampai off Bartley Road has been launched for sale by public tender under the confirmed list of the second half of the 2019 Government Land Sales (GLS) Programme, the Urban Redevelopment Authority (URA) announced on Thursday.

The development with a 99-year lease occupies a site area of 4,666.6 square metres (sq m), and a maximum gross floor area of 9,800 sq m.

Tricia Song, Colliers International's head of research for Singapore, noted that the Bartley Road/ Jalan Bunga Rampai site is the smallest residential site on the GLS programme for the second half of 2019, with the potential to build just 115 units of about 85 sq m each.

The plot is also trapezoid-shaped, and situated next to a small park and the Bartley Viaduct.

Nearby comparable 99-year-leasehold private residential projects include Bartley Ridge (completed in 2016), Botanique at Bartley (2019), and Bartley Residences (2015), all built on previous GLS sites.

These developments transacted on the secondary market at an average of S$1,350 to S$1,515 per square foot (psf), Ms Song noted.

Meanwhile, 0.8 km north-west of the site, freehold projects The Gazania and The Lilium in the How Sun area recently launched at about S$2,000-2,100 psf.

Said Ms Song: "We expect the top bid for this Bartley Road/Jalan Bunga Rampai site to come in at S$900-950 psf per plot ratio or S$95-100 million, with a potential average selling price of S$1,550 psf.

"Taking into consideration the response to suburban sites post-cooling measures and the palatable quantum of the site, we expect it to attract five to eight bidders."

She added that the site's attractions include its 400m walking distance to Bartley MRT station on the Circle Line, and partial unblocked view overlooking a low-rise landed estate.

ERA Realty's head of research and consultancy department Nicholas Mak noted that although the current global economic uncertainties have not directly affected the local real estate market, it could cause some developers to be more cautious.

"Hence, this GLS tender could attract four to nine bids, slightly lower than the number that it could attract in a more bullish economic climate.

"The estimated top bid for the GLS site at Jalan Bunga Rampai ranges from S$79 million to S$87 million (S$750 to S$820 psf ppr)," he said.

The development is within 1 to 2 km from Maris Stella High School and Paya Lebar Methodist Girls' School.

Ms Song added: "Investors could also consider the potential rental catchment of the nearby Paya Lebar Industrial Park and Tai Seng Industrial Estate."

The tender for the Jalan Bunga Rampai site will close at noon on Jan 9, 2020.

According to the URA, the tender closing for this site will be batched with a residential site at Irwell Bank Road, which will be launched for sale in October 2019 under the H2 2019 GLS Programme.

A confirmed list site is launched according to a schedule, regardless of demand.

This is as opposed to a reserve list site which is triggered for launch only if a developer's indicated minimum price in its application is acceptable to the government.