URA to launch tender for reserve list site at Farrer Road

A 99-year leasehold private housing site at Farrer Road, near Botanic Garden MRT Station, has been triggered for release from the government's reserve list at $28.888 million, or $699 per square foot per plot ratio (psf ppr).

According to the Urban Redevelopment Authority (URA), the 0.27-hectare site can be developed into about 41,323 sq ft of gross floor area, which is sufficient for about 40 new homes.

The lower trigger price is probably influenced by lacklustre sales at some centrally located projects recently, renewed concerns in Europe and the prospect of more sites being released in the second half of the year.
Furthermore, unsold units in the nearby projects meant that the developer who triggered the site for sale have to be competitive in their pricing to win over buyers in this current market.

That said, the relatively lower quantum will allow smaller developers to enter the market, noted Mr Lee, who estimated that there could be up to 10 bidders for the site, with an estimated top bid in the range of $950-$1,000 psf ppr and units are expected to sell in the range of $1,800 to $1,900 psf.

At a URA tender that closed last month, a 99-year private housing site at Farrer Drive near Farrer Road MRT Station drew six bids. The top bid of $1,048.52 psf ppr from a unit of mainboard-listed Singapore Land marked a new high for 99-year private housing land offered at a state tender in recent years.

Source: Business Times – 19 July 2012