Leasehold Tampines site for tender

A NEW condominium with about 600 units could be built on a 3.2-ha site facing Bedok Reservoir that was put up for tender to developers yesterday.

CBRE Research executive director Li Hiaw Ho said upgraders from HDB estates in Bedok and Tampines are likely to take a keen interest in any project that is eventually built on the site.

The 99-year leasehold plot at the junction of Tampines 1 and 10 may have a maximum gross floor area of 66,655 sq m, said the Urban Redevelopment Authority.

It is the fourth residential site launched for sale on the confirmed list so far this year. Confirmed list sites are tendered out on scheduled dates, without the need for developers to indicate their interest.

These sites were brought back recently after a suspension to allay fears of a shortage of homes. The 10,550 units to be made available for sale in the first half of this year will be the highest number in the history of the government land sales programme.

The Tampines site is next to The Tropica condo and about five to 10 minutes’ drive from Tampines Central and Tampines MRT station. It was first tendered out in 2008, when the market was slowing. It attracted just one bid – a lower-than-expected offer of about $118 per sq ft per plot ratio, which was rejected. At the time, property consultants had tipped bids of $200 to $300 psf ppr.

This time, consultants are more optimistic, given the improved market.

DTZ expects to see bids of $350 to $400 psf for the land, with the eventual selling price of around $750 to $800 psf on average.

‘Assuming the developer launches the new condo on this site in a buoyant market in 2011, a reasonable land price could range from $410 to $470 psf ppr ($294 million to $337 million),’ said Ngee Ann Polytechnic lecturer Nicholas Mak.

Mr Li said a project on the Tampines site may fetch about $720 to $730 psf, translating to a land price of $215 million to $237 million, or $300 to $330 psf ppr.

This is based on nearby comparable projects. The tender closes on March 16.

Source: Straits Times, 3 Feb 2010