Govt rolls out 5 private housing sites

Govt rolls out 5 private housing sites

For the fourth consecutive month, the government has announced the launch of 99-year leasehold private housing sites under its land sales programme.
In the latest instalment yesterday, the government rolled out five sites - one on the confirmed list and the other four on the reserve list - that can potentially generate about 2,100 homes.

The confirmed list plot is at Pheng Geck Avenue near Potong Pasir MRT Station. A land parcel next door (at Tai Thong Crescent) is one of the four made available for application on the reserve list yesterday. It is zoned for residential use with commercial use at the first storey.

Two other reserve-list plots are at Kim Tian Road (a stone's throw away from Tiong Bahru MRT Station and Tiong Bahru Plaza) and Prince Charles Crescent (about 400-500 metres from Redhill MRT Station). The fourth reserve list site is at Sengkang West Way, near the H2O Residences condo project.

The confirmed list site at Pheng Geck Avenue is next to the condo plot sold at a state tender in August last year to Tuan Sing for about $567 per square foot per plot ratio (psf ppr), which in turn is close to an earlier plot sold for $607 psf ppr to Qingdao Construction at a June 2010 tender (now being developed into Nin Residence).

Six property consultants polled by BT yesterday expect top bids for the Pheng Geck Avenue plot of $550-810 psf ppr. Based on the top end of that range, the average selling price for a new project on the site could be close to $1,450 psf. Some analysts predict 10-15 bids.

Forecasts of top bids for the Tai Thong Crescent plot range from about $550 psf ppr to $800 psf ppr, with some consultants predicting 10-15 bids, if the site were to be launched in the current market.

Analysts gave rave reviews on the Kim Tian plot, a short walk from Tiong Bahru MRT Station. The site is centrally located, and the Tiong Bahru/Kim Tian area is fairly niche and self-contained with eateries, shops and conservation apartments.

However, analysts differed widely in their expectations of how much the plot could sell for if it were to be tendered out today - from $580 psf ppr to $870 psf ppr.

For the site at Prince Charles Crescent, expectations of the winning bid are in the $650-900 psf ppr range. The site is near a plot at Jervois Road picked up by Singapore Land for $881 psf ppr at a state tender in February. Closer to Redhill MRT Station, City Developments bought a plot (next to Ascentia Sky condo) for $754 psf ppr in December.

Analysts priced the Sengkang West Way plot at $336-440 psf ppr. While the site is not near an MRT or LRT station, it is located in a growth area and a new condo on the site would find demand from upgraders.

Source: Business Times – 16 May 2012