SINGAPORE – The City Redevelopment Authority (URA) launched on the market on Tuesday (Nov 30) two 99-year leasehold non-public residential websites at Pine Grove that may yield probably over 1,000 items in complete.
Each websites had been launched below the reserve checklist of the second half 2021 authorities land gross sales (GLS) programme. Such websites will likely be put up for tender solely when a developer has indicated a minimal value that’s acceptable to the Authorities.
Spanning 22,534.7 sq. metres (sq m), parcel A has a most gross ground space of 47,323 sq m and might yield 520 items. Parcel B, which spans 25,039.2 sq m, has a most GFA of 52,582 sq m and might yield 565 items.
Analysts say the websites might draw demand from land-hungry builders, given their palatable measurement and placement in a preferred residential enclave. Key sights embrace proximity to Henry Park Main College, Holland Village, the one-north precinct and Nationwide College of Singapore (NUS).
Given the sturdy property market sentiment, builders’ rising urge for food for land acquisition and dwindling provide of latest houses within the suburbs, there’s a good probability that builders might apply to set off these two GLS websites off the reserve checklist, stated Mr Ismail Gafoor, chief government of PropNex Realty.
“The 2 parcels will provide extra non-public housing provide to the Ulu Pandan property. The latest close by new mission – Ki Residences at Brookvale – was launched in December 2020 and has offered over 75 per cent of its items – indicating wholesome underlying demand for brand new housing there,” he added.
Cushman & Wakefield’s head of analysis Wong Xian Yang famous that there are dwelling unit caps on each websites to handle site visitors within the space.
“Given their comparatively giant measurement, the websites might be triggered one after the other, though Parcel A may entice extra curiosity resulting from its barely smaller land measurement and extra common form.
“But when each are triggered on the market on the identical time, some builders might bid for each websites to mitigate future competitors,” he stated.
Analysts count on between six and 10 bidders for every web site, with bids ranging between $960 per sq. foot per plot ratio (psf ppr) and $1,300 psf ppr.
If triggered, the bids might set the benchmark for the reserve value of close by en bloc-hopeful Pine Grove, whose final $1.86 billion collective sale try closed with out patrons, stated analysts.
Ms Tricia Track, head of analysis for South-east Asia at CBRE, famous that Parcel A might be constructed as much as a median of 980 sq ft per unit, whereas Parcel B might be constructed as much as a median of 1,002 sq ft per unit.
“These minimal unit sizes are barely larger than the implied 85 sq m or 915 sq ft as per URA tips for non-landed residential developments exterior the central space in January 2019,” she stated.
“Nonetheless, given the big mixed measurement of the providing and contemplating unit affordability, we count on the highest bid to be extra tempered, in comparison with the current tenders of two parcels at Slim Barracks, which have a smaller complete quantum of 400 items and achieved high bids of $1,210-$1,246 psf ppr.
“If both of the Pine Grove websites are launched for tender, builders might be a promoting value of $1,900-$2,000 psf, and a land fee of $1,000-$1,100 psf ppr,” Ms Track stated.
Huttons Asia senior analysis director Lee Sze Teck stated probabilities of the websites being triggered should not excessive.
“There are higher websites on the confirmed checklist akin to Jalan Tembusu and upcoming en bloc websites. There could also be extra websites below first half 2022 GLS programme which will likely be introduced subsequent month,” he added.
