Siglap Road residential site for sale under GLS

SINGAPORE — The Urban Redevelopment Authority (URA) has launched a private residential site at Siglap Road for sale by public tender, which analysts said will draw developers due to the attractive location.

With a gross plot ratio of 3.5, the 207,848sqf parcel has a maximum permissible gross floor area of 727,467sqf, and can yield an estimated 750 housing units, the URA said yesterday.

The tender for the 99-year leasehold site, released from the Confirmed List of the Government Land Sales (GLS) programme for the second half of this year, will close on Jan 14, it added.

Analysts said positive attributes of the land parcel include its proximity to reputable schools such as Victoria School, Victoria Junior College and CHIJ Katong Convent. It is also located near East Coast Park and the upcoming Siglap MRT station along the Thomson-East Coast line.

“It has easy access to the East Coast Parkway, and it is a short driving distance to the Central Business District. The site also enjoys an unblocked view of the beach. (But) given that there are several projects in the area that are freehold, the challenge is upon the developer to create a compelling value proposition for a 99-year leasehold development,” said Dr Lee Nai Jia, regional head of Southeast Asia research at property consultancy DTZ.

“Additionally, traffic noise from East Coast Parkway may also be a concern for future buyers.”

Dr Lee expects the tender to receive six to eight bids, with the top bid ranging from S$574 million to S$654 million, or S$790 to S$850 per square foot per plot ratio (psfppr).

Mr Nicholas Mak, executive director at SLP International Property Consultants, said given that “it is very rare for the Government to offer a GLS residential site in the East Coast area for sale”, the tender could attract seven to 15 bids. He expects a top bid in the range of S$600 million to S$635 million, or S$825 to S$873 psfppr. “Due to the size of this site and development, the real estate developer would require sufficient financial capacity to develop this project. Hence, the bidders are likely to be large developers and consortiums,” said Mr Mak. LEE YEN NEE