URA will release a 99-year leasehold site at Central Boulevard for public tender following a successful application from a developer. The developer is committed to bid at a price of not less than $1.54 billion in the tender, which works out to $1,010 psf per plot ratio. The white site is on the reserved-list of 2H2016 Government Land Sales programme. URA will announce the launch of the public tender for the site later this month.
JLL's head of research for Singapore, Tay Huey Ying says, "We believe the main motivation behind the triggering of this site stemmed from the potential tightening of prime office supply in the CBD by 2020, given the built up of supply from earlier programs would have tapered off by then."
The 116,990 sq ft plot is located opposite Telok Ayer Market (Lao Pa Sat) within the Marina Bay area. It is also located close to Downtown MRT station, Raffles Place interchange and the upcoming Shenton Way MRT station.
At least 1.08 million sq ft or 71% of the 1.52 million sq ft maximum allowable gross floor area (GFA) is dedicated for office use. The successful bidder is also allowed to develop retail units, hotel, serviced apartments and residential units on the remaining GFA.
"The site will attract bidders who have a longer view of the market. When the new development is completed early 2020 – 2021, it will provide continuity in Singapore’s office supply for the mid to long term, " notes Desmond Sim, head, CBRE Research, Singapore & South East Asia.
CBRE expects healthy interest in the plot, with close to 10 bidders, both local and foreign. The plot might see keen competition in terms of pricing.
Site plan