Two residential sites – in Kampong Java Road and Tampines Avenue 10 – are up for grabs under the Government Land Sales programme.

 

A mixed-use plot in Marina View is available for application under the reserved list. The three sites can yield about 2,000 homes.

 

The government land tenders that closed in September attracted more subdued bidding following the July cooling measures and developers will likely remain wary.

 

The Kampong Java site in prime District 9 near Newton MRT could prove a litmus test as it is the first private residential land to be launched under the confirmed list since the Urban Redevelopment Authority’s revised minimum average unit size guidelines.

 

The site sits just outside of the Central area and should be subject to a minimum average unit size of 85 sq m (from the current 70 sq m) come Jan 17.

 

The response could indicate developers’ confidence in the high-end home market after a spate of collective sales in the area and the new development controls.

 

Developers could target a $2,100 per square foot average selling price and a land bid of $1,350 per square foot per plot ratio (psf ppr) or $470 million.

 

Analysts believe the executive condominium (EC) site in Tampines Avenue 10, which was released by the Housing Board under the confirmed list, will attract keen interest.

 

They point to the dearth of new EC units and their popularity among first-time buyers and upgraders. The 24,938.7 sq m leasehold site can yield up to 695 units.

 

Tampines has not seen a new EC project since the launch of [email protected] in February 2013, so there could be keen demand from upgraders as well as nearby HDB towns.

 

There could be six to 10 developers contesting for the parcel with the top bid coming in between $500 and $600 psf ppr.

 

The new development rules should not affect ECs as the average unit size is well above 85 sq m.

 

The Marina View site, which is slated for mixed use with 540 hotel rooms and 905 homes, will go up for tender if a developer indicates an acceptable minimum price.

 

The plot will be hotly contested by developers who wish to increase their exposure to the hotel market.

 

The outlook for the hospitality sector is improving due to the increasing number of tourist arrivals and limited pipeline supply of new hotel rooms.

 

Another positive is that the site is in the Central area, and so is exempt from the new development controls.

 

The tender for the sites at Kampong Java and Tampines Avenue 10 both close at noon on Jan 15.

 

Adapted from: The Straits Times, 1 November 2018

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