Sengkang site to draw healthy interest

SINGAPORE — A private housing site at Fernvale Road has been put up for sale by the Urban Redevelopment Authority (URA), with analysts saying the tender is likely to draw healthy interest due to the location of the site and the absence of upcoming mass-market condominium projects in the Sengkang area.

The 99-year leasehold site, released from the Confirmed List of the second half 2016 Government Land Sales (GLS) programme, sits on 17,196.4 square metres (185,100 sqft) of land. With a maximum permissible gross floor area of 51,590 square metres (555,310 sqft), it can yield an estimated 605 homes, the URA said yesterday.  Upcoming executive condo launches include Yio Chu Kang EC, Inz Residence EC, Choa Chu Kang EC, Anchorvale Lane EC,  while existing ones include Terrace EC, Brownstone EC, The Vales EC, Parc Life EC , Sol Acres EC, The Visionaire, Bellewoods EC, Signature at Yishun, The Criterion EC, Treasure Crest, Northwave EC Waterwoods EC, Skypark Residences, Wandervale EC, The Amore EC,  Bellewaters EC.

 Mr Nicholas Mak, Executive Director and Head of Research & Consultancy at SLP International Property Consultants, said that the site is attractive because of its close proximity (less than 100m) to Thanggam LRT Station. He also pointed out that the plot is fairly large and the shape of the site is not too irregular.

“Although the current buying demand in the high-end residential property market is still weak, this subject site is still expected to attract keen interest from developers due to its location … and the absence of upcoming mass-market condominium projects yet to be launched in the Sengkang area,” Mr Mak said. He expects the tender to draw about 5 to 10 bids, with offers ranging from S$244 million to S$272 million, or S$440 to S$490 psf ppr.

This is the third piece of residential land parcel within a three-km radius of the subject site that the government has offered for sale in the past six months. The two previous GLS residential land parcels were Executive Condominium (EC) sites at Yio Chu Kang and Anchorvale Crescent, which were launched for sale in December 2015 and June 2016 respectively.

Prices of properties at some projects located near the subject site, including High Park Residences and H20 Residences, were transacted between S$970 psf and S$1,060 psf.

The tender for the Fernvale Road land parcel will close at noon on September 27.