Keen interest from developers

SINGAPORE — A 0.48 hectare private housing site in Margaret Drive will be put up for sale via public tender in one to two weeks, the Urban Redevelopment Authority (URA) announced on Thursday, with analysts saying the land parcel will draw a strong response from developers due to its attractive location.

The 99-year leasehold site was available for sale on the Reserve List of the Government Land sales programme for the second half of 2016. The URA said the tender was triggered after it received an application from a developer which committed to bid at a price of not less than S$185.76 million. A parcel on the GLS Reserve List will only be launched for sale if there is sufficient interest or when a developer places a bid that is deemed acceptable to the Government.  Upcoming executive condo launches include Yio Chu Kang EC, Inz Residence EC, Choa Chu Kang EC, Anchorvale Lane EC,  while existing ones include The Terrace EC, Brownstone EC, The Vales EC, Parc Life , Sol Acres EC, The Visionaire, Bellewoods EC, Signature at Yishun, The Criterion EC and Northwave EC.

Located near the Commonwealth MRT station and close to the Ayer Rajah Expressway, the site sits on 4,809.8 square metres and can yield a maximum allowable gross floor area of approximately 22,195 sq m, the URA said. This is equivalent to 238,905 sq feet that can be developed into an estimated 275 homes.

In addition to the excellent transport connectivity, residents will have a wide range of shopping, dining and entertainment options at Queensway Shopping Centre, IKEA Alexandra and Alexandra Central, a hotel and a retail development currently under construction, the URA said. With many schools nearby, such as Queenstown Primary School, Queensway Secondary School and Anglo-Chinese School (International), the development may be an ideal home for families with school-going children.

Mr Nicholas Mak, Executive Director, Research & Consultancy Department at SLP International Property Consultants, said: “Although the current buying demand in the residential property market is still weak, this subject site is still expected to attract keen interest from developers due to its relatively attractive location and manageable size. This tender could draw about seven to 12 bids.”

“The latest condo launched in that vicinity is the 736-unit Queens Peak. The price of the land parcel on which Queens Peak sits was sold in June 2015 at S$871 per sq ft per plot ratio (psfppr). This price level will be heavily used as a reference by developers interested in the subject site,” he added.

The top bid in the tender for this site could range from S$205 million to S$218 million, or about S$858 to S$912 psfppr, he said.

executive condo and land site pic 1