Government releases three residential sites for sale

By Bong Xin Ying

/ EdgeProp Singapore |

May 31, 2018 10:47 PM SGT

The URA and HDB have released three 99-year leasehold, residential sites for sale at Dairy Farm Road, Sims Drive and Tampines Avenue 10. The site at Dairy Farm Road is expected to yield about 500 units, with another 680 units at Sims Drive and 700 units at Tampines Avenue. Together, the three sites could yield a total of 1,880 units.

Dairy Farm Road

The site at Dairy Farm Road is in the URA Confirmed List and is zoned for residential development with commercial use on the first level. Located adjacent to the German European School (Singapore) and directly opposite Dairy Farm Nature Park, the site at Dairy Farm Road has a land area of 211,486 sq ft and maximum gross floor area (GFA) of 444,123 sq ft.

The site at Dairy Farm Road is located next to the German European School (Credit: URA)

Nearby is the 99-year leasehold The Skywoods, a 420-unit residential development completed in 2016. Only unit changed hands since Jan 2017, and it was a 1,345 sq ft unit that was sold for $1,301 psf in April 2018, according to Tay Huey Ying, JLL Singapore head of research & consultancy. The developer of The Skywoods purchased the site in Sept 2012 for $616 psf per plot ratio (ppr), notes Tay.

The mixed-use development site directly connected to the Bukit Panjang MRT station on the Downtown Line was sold for $805 psf ppr, adds Tay, and that’a a record price for the area. Units at Hillion Residences were commanding average prices of $1,496 psf this year.

Huttons Asia head of research Lee Sze Teck reckons the site could attract up to 10 bids, with a top price between $900 and $1,000 psf ppr.

Sims Drive

The site at Sims Drive has a land area of 174,649 sq ft and maximum GFA of 523,948 sq ft. It is located in the city fringe, within walking distance of the Aljunied MRT station.

The residential development site at Sims Drive (Credit: URA)

Tricia Song, Colliers International head of research for Singapore, says the site is likely to attract “bullish bids”, and more than the four bids garnered by the adjacent site where Sims Urban Oasis currently sits. GuocoLand paid $688 psf ppr for the Sims Urban Oasis site back in April 2014. The newly completed 1,024-unit Sims Urban Oasis may have had a slow start but finished strong with 98% of the units sold as of April 2018, she adds. Selling prices which started at $1,300 psf have also hit an average of $1,500 psf, notes Colliers.

Colliers’ Song estimates that the site at Sims Drive could see a top bid of $575 million ($1,100 psf ppr), a significantly higher land rate than what GuocoLand paid for the site four years ago as the site is a more palatable size (for a 680-unit development) and the market recovery since.

Tampines Avenue 10

The site at Tampines Avenue 10 is zoned for an executive condo (EC) development with a land area of 268,440 sq ft and GFA of 751,632 sq ft. The residential enclave at Tampines Avenue 10 is located just a few minutes’ drive from Tampines Central.

The EC site at Tampines Avenue 10 (Credit: HDB)

According to the URA Master Plan 2014, this is the last residential development land parcel along Tampines Avenue 10. The site is located on the Reserve List of the government land sales programme. However, Huttons Asia’s Lee expects the site to be triggered for sale soon owing to the strong take-up rate for the 861-unit private condo The Tapestry by City Developments Ltd. Launched at the end of March, the project 315 out of a total 450 units released snapped up over the first weekend of sales, at an average price of $1,310 psf.

Adjacent to the EC site for sale is the 626-unit private condo The Alps Residences by MCC Land. Launched in Oct 2016, a total of 270 units were sold at an average price $1,075 psf. Transactions in the three months from Feb to April 2018 averaged $1,188 psf, reflecting a 10.5% price increase. The project has only 20 units available for sale as of May 31.

The last EC that was launched for sale in the vicinity was Arc at Tampines. The tender for the site saw six bids and was sold for $302 psf ppr in Nov 2010 to a joint venture between Hoi Hup Realty and Sunway Developments. The 574-unit Arc at Tampines was launched in 2011 at an average price of $740 psf. The latest resale prices have been in the range of $850 to $950 psf.

The EC site is likely to be triggered “owing to the diminishing unsold EC stock”, adds Colliers’ Song.

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