The government has released three sites for sale under the 2H2018 Government Land Sales (GLS) programme. Two are residential sites under the confirmed list — one is an executive condominium (EC) site on Tampines Ave 10, and the other is located on Kampong Java Road. The third is a white site at Marina View and is on the reserve list.
The Kampong Java GLS site occupies a 125,327 sq ft plot that has a 99-year tenure. Zoned for residential use, the site could be developed to a maximum gross floor area (GFA) of 350,925 sq ft and yield about 380 units of 915 sq ft each. It is located in the established Newton residential estate and near schools such as Anglo-Chinese School (Jr) and Etonhouse Pre-School (Newton). Malls such as Velocity @ Novena Square and United Square are also nearby.
The Kampong Java GLS site in Newton (Pictures: URA & HDB)
Since the site is outside the Central Area, the units are subject to a requirement of at least 85 sq m (915 sq ft) in average size. The tender is expected to draw “healthy interest”, says Nicolas Mak, executive director of ZACD Group. Property consultants expect the site to attract six to 11 bids, and the top bid could range from $421 million ($1,200 psf per plot ratio) to $470 million ($1,350 psf ppr).
The EC site in Tampines occupies a 268,438 sq ft land area that has a maximum GFA of 751,632 sq ft, but the number of new units is capped at 700. The site also has a 99-year leasehold tenure. The last EC site tender in the area was held eight years ago for the 574-unit Arc at Tampines. It attracted six bids with the top bid of $302 psf ppr jointly submitted by Hoi Hup Realty and Sunway Developments, says Tricia Song, Colliers International’s head of research for Singapore.
As at end-September, there were only 13 unsold EC units in the market and there is “latent demand from first-timers and upgraders for ECs”, says Lee Sze Teck, Huttons Asia’s head of research. The new site is close to City Developments Ltd’s The Tapestry, which was launched in March this year and is more than 62% sold, with an average selling price of $1,350 psf, says Song.
Property consultants expect the EC site to draw in six to 11 bids, with a top bid of $398 million (530 psf ppr) to $430 million ($570 psf ppr).
The white site at Marina View will be a residential and hotel development with about 540 hotel rooms and 905 residential units, complemented by retail and F&B outlets. The plot comprises an 84,148 sq ft above-ground area as well as a 194 sq ft underground pedestrian link. It has a maximum GFA of 1.1 million sq ft, with at least 548,959 sq ft for residential use, 279,861 sq ft for hotel use and 43,055 sq ft for commercial and office uses, according to Song.
The white site at Marina View will be a residential and hotel development
This site is likely to appeal to developers with hotel interests, says Colliers’ Song. Developers with varying interests may also choose to jointly develop it. Given the development potential and various uses of space, the top bid could range from $1.5 billion ($1,380 psf ppf) to $1.75 billion ($1,600 psf ppr), she says.
The tender for the Tampines and Kampong Java sites will close on Jan 15 next year.