PROPERTY developers looking to boost their residential landbanks can get their cheques ready for a new piece of state land.
The Urban Redevelopment Authority (URA) said yesterday that a 99-year leasehold site at Hougang Ave 2 is open for applications from interested developers.
URA had introduced six new residential sites to the reserve list under the H1 2010 government land sales programme. This 3.02 ha plot at Hougang is the first of them to be released.
The site can house a low density condominium or landed housing development. For condominium units or flats, the maximum gross floor area is 455,152 sq ft.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said that the site could yield 380-400 units in a non-landed project, or 140-150 houses in a landed development.
The plot is located within a private residential estate and is near Hougang HDB town. It is also near the Hougang and Kovan MRT stations.
Property consultants expect developers to show keen interest in the land parcel. DTZ executive director Ong Choon Fah observed that it sits within an established landed housing estate, and residents there could form a pool of potential buyers.
For instance, young people may be interested in condominium units there so that they can live near their parents, she said.
Mr Mak believes that a developer who plans for a non-landed project on the site could have a higher chance of winning the tender. This is because non-landed projects can be sold for a higher price on a per sq ft (psf) basis, and the developer would be able to bid more aggressively.
He expects the site to attract some four to eight bids if it is triggered for sale, and the higher bids could range from $159-$193 million, which works out to $350-$425 psf per plot ratio.
Nearby, two units at Kovan Residences were sold at $754-$890 psf last month, going by caveats lodged.
URA will make the remaining five new residential sites on the reserve list available soon. It will release one at Stirling Road and another at Hougang Avenue 7 next month. One site in April and two in May will also be available.
In addition, the government will be releasing another four sites on the confirmed list – two in March and two in April.
Together, sites on the reserve and confirmed lists can supply 10,550 units – the highest number in the history of the government land sales programme.
Source: Business Times, 26 Feb 2010