Two sites for sale in Stirling Road, Hougang to yield 1,160 homes
SINGAPORE — The Urban Redevelopment Authority (URA) on Thursday (April 20) launched for sale by public tender two private residential sites - at Stirling Road and Lorong 1 Realty Park - that can yield a total of about 1,160 homes.
The 99-year leasehold site at Stirling Road, first made available on the Reserve List of the Government Land Sales (GLS) 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 an estimated 1,110 homes.
Located near the Queenstown MRT Station and Ayer Rajah Expressway, the site is easily accessible via public and private transport. It is also close to shopping, dining and entertainment options at Queensway Shopping Centre, IKEA and Alexandra Central. For families with school-going children, Queenstown Primary School, Queenstown Secondary School, Gan Eng Seng Primary School and Crescent Girls’ School are located nearby.
“While the Stirling Road site is in a popular matured estate with good attributes such as being near MRT station and amenities, the project with an estimated dwelling unit number of 1,110 is huge and could deter some developers from bidding for it due to the ABSD (Additional Buyer’s Stamp Duty) remission deadline of five years,” said Ms Christine Li, Director of Research at property consultancy Cushman and Wakefield.
“This could mean that even though developers are keen, they might have to form consortiums in order to take on the site. The number of bidders should be around eight to 12… The bid quantum could range from S$860 to S$950 million, which translates to between S$900psf and S$1,000psf,” she added.
The 99-year leasehold site at Lorong 1 Realty Park is released for sale via the Confirmed List of the 1st half 2017 GLS programme. Sitting on an area of 144,221 sq ft, the site is zoned for landed housing with a maximum building height of three storeys. About 50 homes can be built on the site, the URA said.
Located within an established residential area in Hougang, the land parcel is connected to Central Expressway and Kallang Paya Lebar Expressway. Hougang MRT station and Hougang Central Bus Interchange are also located nearby. Residents of the homes built on the site can also visit Heartland Mall-Kovan and Hougang Mall for their dining and shopping needs, the URA said.
“It’s quite an attractive site given that the last landed housing launch in the vicinity is Haus@Serangoon Gardens (in 2012). The landed housing segment has been underperforming the non-landed segment due to its less speculative nature (usually for owner occupation) and affordability issues, as buyers today are still price- and quantum-sensitive,” said Ms Li.
“Nevertheless, if they can price the project attractively, it can still attract upgrader’s demand. The land bids could range from S$450 to S$550psf, which translates to a bid quantum between S$64 million and S$78 million. I reckon there could be 12 to 16 bidders for this site,” she added.
The tender for the Stirling Road site will close at noon on May 18, while the tender for the Lorong 1 Realty Park site will close at noon on June 1.
Clarification: In an earlier version of this story, it was reported that the land bids for Lorong 1 Realty Park could range from S$900 to S$1,000psf, which translates to a bid quantum between S$127 million and S$141 million. Cushman and Wakefield has clarified that it should be a range of S$450 to S$550psf, which translates to a bid quantum between S$64 million and S$78 million.