Healthy developer interest expected for Stirling Road housing site

SINGAPORE — A 2.1 hectare private housing site near Queenstown MRT station will be launched for sale in about two weeks, the Urban Redevelopment Authority (URA) said on Monday (April 10), with analysts saying the tender is expected to draw healthy interest from developers due to its attractive location.

The 99-year leasehold site in Stirling Road, first made available on the Reserve List of the Government Land Sales programme in March 2010, has been triggered for sale after an unnamed developer committed to bid at a price no less than S$685.25 million, the URA said.

The site, which sits on 227,221 sq ft of land, has a gross plot ratio of 4.2, translating into a maximum permissible gross floor area of 954,327 sq ft. This can be developed to about 1,110 homes, the URA said.

“It is interesting to note that this site has been available on the Reserve List for the past seven years and not triggered for sale until today. One likely reason could be due to its large size and the large financial commitment needed,” said Mr Nicholas Mak, Executive Director, Research & Consultancy Department at SLP International Property Consultants.

The positive attributes of the Stirling Road site, he said, include its close proximity to the Queenstown MRT station and amenities such as the Mei Ling wet market, Queenstown Polyclinic, Queenstown Swimming Complex, Queensway Shopping Centre and Swedish furniture retailer Ikea.

The future development on the site is ideal for families with school-going children as numerous schools including Queenstown Primary and Secondary School, Gan Eng Seng Primary School and Crescent Girls’ School are located nearby, the URA said.

Also nearby is the MDIS College, which will offer leasing potential for investors as there are quite a number of international students attending the college, Mr Mak added.

“As many developers are still hungry to acquire well-located development sites, this tender is expected to draw healthy interest of about eight to 14 bids. Additionally, the good sales performance from nearby condo projects, such as Queens Peak, as well as the recent easing of the Seller’s Stamp Duty should lift the confidence of bidders when they bid for the site,” he said.

The top bid in the tender for this site could range from S$860 million to S$910 million, or about S$901 to S$954 per sq ft per plot ratio, he estimated.