Residential plot at Tampines put up for sale

A RESIDENTIAL plot at Tampines was put up for sale by the government yesterday – the fourth so far this year.

In January, the government released three residential sites – including two for executive condominiums – for sale through its confirmed list.

Interest in the latest plot, at the junction of Tampines Avenue 1 and Avenue 10, is expected to be strong. Analysts say it could fetch anything between $300 and $460 per sq ft per plot ratio (psf ppr).

The site was first put up for tender in June 2008. But the government decided not to award it then because the sole bid of $118 psf ppr was deemed to be too low.

Bids will certainly be higher this time, analysts say. CB Richard Ellis (CBRE) reckons the site could fetch $300-330 psf ppr, while DTZ has a more positive estimate of $350-400 psf ppr. Others put the figure as high as $500 psf ppr.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said: ‘Assuming the developer launches the new condo on this site in a buoyant market in 2011, a reasonable land price could range from $410-$460 psf ppr. But one or two very bullish bidders could bid as high as $500 psf ppr.’

The site area is about 3.2 ha and, with a maximum gross floor area of 717,500 sq ft, can yield about 600 housing units. It is the biggest of the eight residential sites up for sale in the first half of this year.

Two new projects at Bedok Reservoir Road – Waterfront Waves and Waterfront Key – are being marketed at $700 and $760 psf respectively, said Li Hiaw Ho, executive director OF CBRE Research.

And in the resale market, units in The Tropica, Aquarius By The Park and Baywater were sold at between $640 and $670 psf in the fourth quarter of 2009, he added.

‘Based on these comparables, we expect a new 99-year leasehold project in this location may fetch around $720-$730 psf,’ Mr Li said. ‘This will translate to a land price of $215-$237 million, or $300-$330 psf ppr, for the site.’

DTZ’s South-east Asia research head Chua Chor Hoon said that homes on the development could go for between $750 and $800 psf.

In a statement, the Urban Redevelopment Authority said that another four private residential sites will be released for sale via the confirmed list in March and April.

Together, these eight sites – including the newly launched parcel at Tampines – can yield about 2,925 residential units. This is close to the highest-ever potential supply of about 3,000 units – in the H2 2007 government land sales (GLS) programme – from the confirmed list since the reserve list/confirmed list system started in the second half of 2001.

In addition, there are another 18 residential sites on the reserve list – including three executive condominium plots and two mixed-use sites.

‘The total supply quantum of 10,550 units from the confirmed list and reserve list for the H1 2010 GLS programme is the highest in the history of the GLS programme,’ URA said.

It added: ‘The government will continue to monitor the property market closely. If necessary, more supply can be injected via the second half 2010 GLS programme to ensure property prices are in line with economic fundamentals.’

Source: Business Times, 3 Feb 2010