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Private housing site near Tanah Merah MRT up for tender

SINGAPORE — A residential site at the junction of New Upper Changi Road and Bedok South Ave 3 has been put up for sale by public tender by the Urban Redevelopment Authority (URA), with analysts saying the public tender will likely draw developers due to its attractive location.

SINGAPORE — A residential site at the junction of New Upper Changi Road and Bedok South Ave 3 has been put up for sale by public tender by the Urban Redevelopment Authority (URA), with analysts saying the public tender will likely draw developers due to its attractive location.

The 262,575sqf parcel has a maximum permissible gross floor area of 551,414sqf. At a gross plot ratio of 2.1, the 99-year leasehold site can yield an estimated 570 homes.

“The triggering of the land parcel does not come as a surprise, given the location’s attributes,” said Dr Lee Nai Jia, regional head of Southeast Asia, DTZ. “The site ticked many boxes: Proximity to (Tanah Merah) MRT station and educational institutions, within walking distance to Bedok Sports Hall, and a great rental catchment, which includes workers in the Changi Business Park. Rental yield in the area is about 3-3.5 per cent, which is pretty attractive for residential developments.”

URA said it had received an application from a developer for the site on Jan 7, with a commitment of S$320 million in the tender. The site is released from the Reserve List of the second half of 2015 Government Land Sales (GLS) Programme and the tender will close on Feb 23.

“The bid that triggered the launch of the site is slightly conservative, as the developer may have presumed a 15 per cent decrease in sales price from December 2015 to October 2016. Assuming that prices will dip by about 5 per cent, we anticipate the winning bid to be around S$380 million (S$690 a sqf) to S$400 million (S$725 a sqf). Given the location, we expect the number of bids to be around 10,” said Dr Lee.

Nicholas Mak, head of research and consultancy at SLP International Property Consultants, expects more GLS confirmed sites to be put up for sale for the year ahead.

“We could see more sites to be triggered for sale. Regardless of the slow market, developers need the land parcel to keep the business going, or they will have a lot of spare capacity, development division will be idle,” he said. ANGELA TENG

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