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99-yr leasehold site is within prime property district

Market watchers estimate a 3,580 square metre Handy Road residential site offered by the Urban Redevelopment Authority (URA) could fetch $60-70 million.

The 99-year leasehold site has a 2.8 plot ratio, giving a maximum gross floor area of about 10,000 sq m. At $60-70 million, the price would be $556-648 per square foot per plot ratio (psf ppr). ‘We expect the tender price to be around $600 psf ppr,’ said Li Hiaw Ho, executive director of property firm CB Richard Ellis’s research unit.

‘The selling price for the residential project that is eventually built will average between $1,200 and $1,300 psf.’

The land right next to the site - on which 8 @ Mount Sophia is being built - was sold in 2002 for less than $300 psf ppr. 8 @ Mount Sophia was launched in March 2005 at more than $700 psf. For this site, the maximum building height is 10 storeys.

The latest Handy Road site is one of two residential parcels transferred to the confirmed list from the reserve list under the government’s land sales programme for the first half of 2007. The other, at Choa Chu Kang/Woodlands roads, is scheduled for launch in June.

The Handy Road site is within the prime residential district, next to shopping and entertainment amenities such as Plaza Singapura, The Atrium @ Orchard and The Cathay.

‘It offers future residents a variety of lifestyle opportunities and amenities such as shopping, dining, cinema, theatres and performance venues,’ URA said. Another selling point is that Dhoby Ghaut MRT station is next door.

The tender closes at noon on March 28. The successful tenderer will have the option of developing the site for full residential use or residential use with a commercial element on the first floor.

Source : Business Times - 1 Feb 2007

Consultants expect strong interest in tender for Handy Road site

A SLIVER of land at Handy Road not much bigger than half a football pitch will further test the strength of the recovery of properties in the Orchard Road area.

The 3,584 sq m site is next to Frasers Centrepoint’s 8 @ Mount Sophia, behind The Atrium @ Orchard and near Dhoby Ghaut MRT Station.

Experts expect it to attract keen interest given the buoyant market and its location.

Property consultants said the land, which has been launched for tender by the Urban Redevelopment Authority (URA), could fetch between $600 and $890 per sq ft (psf) per plot ratio.

This means a project on the 99-year leasehold site could fetch prices of $1,200 to $1,600 psf. With a plot ratio of 2.8, the site can accommodate a 10-storey building with a maximum gross floor area of 10,034 sq m.

Commercial space is allowed on the first floor of the residential development.

Mr Li Hiaw Ho of CB Richard Ellis said the expected land price of $600 psf would be more than double the $280 psf of Frasers Centrepoint’s 8 @ Mount Sophia site.

Units at 8 @ Mount Sophia were sold at up to $900 psf about two months ago, said Mr Li.

But considering the strong recovery in the high-end market and the robust interest in Orchard Road properties, prices at the Handy Road development could reach $1,200 to $1,300 psf, he said.

Colliers International’s Mr Ng Eng Joo and Savills Singapore’s Mr Ku Swee Yong both believe the price of the new project could go as high as $1,500 or $1,600 psf.

‘The site could be developed to around 150 units and these could be leased out to students or professors,’ said Mr Ku.

The value in that area has been rising, particularly with the investment from Far East Organization and Lend Lease in the commercial space in the Somerset stretch, and the collective sales around it, he said.

At the other end of Orchard Road, the site of the most coveted spots, new luxury projects such as Orange Grove Residences and Cuscaden Royale have sold relatively well before their launch.

The Handy Road site is one of two residential blocks transferred from the reserve list to the confirmed list for the first half of this year.

It was first made available in 2004 but there were no takers in a flat market.

Unlike those on the reserve list, sites on the confirmed list are tendered out according to a pre-stated schedule without the need for developers to indicate their interest via a bid.

The tender will close on March 28.

Source : Straits Times - 1 Feb 2007

Two new industrial sites have been put on the confirmed list of the Government Industrial Land Sales programme and buying interest is seen to be high.

The Ministry of Trade and Industry said yesterday that it would put two sites on the confirmed list and four sites on the reserve list of the programme for the first half of 2007.

The two on the confirmed list are at Tampines Street 92/Simei Avenue and Kaki Bukit Road 3. The reserve list sites are at Pioneer Road/Tuas Avenue 11, Sin Ming Lane, Yishun Avenue 6 (Parcel 1), and Commonwealth Drive/Commonwealth Lane.

Meanwhile, the most recent site to be awarded is at Woodlands Industrial Park E5, in December 2006. The 30-year leasehold site was sold for $5.12 million or $304.33 psm per plot ratio.

Savills Singapore director of Industrial Services, Dominic Peters, believes that the two new sites on the confirmed list will attract even higher bids.

He said that the sites were well-located and could fetch 10-15 per cent more than what was paid for the recent Woodlands site. ‘There is not much supply for new space in the East, and this site (Tampines) would suit supporting industries to the Changi Business Park.’

On the Kaki Bukit site, he said that the low plot ratio of 0.6 would be attractive to developers who wanted to build a single storey workshop space for servicing cars. Rents for such space could increase by 10 per cent, he added.

Source : Business Times - 31 Jan 2007

Property developers will have plenty of land sites to choose from next year, with the Government releasing a wide variety in its latest land sales offering yesterday.

Residential sites, especially those in the suburban areas, were in focus as the Ministry of National Development (MND) announced its land sales programme for the first half of next year.

In an unusual move, a residential plot in Chua Chu Kang was put on the confirmed list to be sold outright.

Housing sites have been left out of the confirmed list for the past five years, as the Government slashed its land sales programme amid the market downturn.

Another two suburban sites, in Ang Mo Kio and West Coast, will go on the reserve list. These will go on sale only if developers lodge a bid at a minimum acceptable price.

‘There are definitely more choices for developers,’ said Mr Li Hiaw Ho, executive director of research at CB Richard Ellis.

He added that the Government’s bid to tempt developers with these suburban sites may work as home buyers are expected to shift their focus to projects in non-prime residential areas next year.

Suburban homes have been lagging behind luxury residences in terms of both price and volume, leading developers to snap up prime sites and ignore the suburban plots on the reserve list.

But this also means that most developers are now running low on their stock of 99-year leasehold sites, so they may pick up more of such land, said Mr Li.

He expects the Ang Mo Kio plot to be the most attractive as it is located next to both the Ang Mo Kio Hub and the Ang Mo Kio MRT Station.

The site also has an unusually high plot ratio of 4.9 and can probably fetch around $135 million to $165 million, or up to $490 per sq ft (psf) of total floor area, added Mr Li.

However, developers looking to pick up prime land will not be left out in the cold.

A residential plot in Handy Road, near Plaza Singapura, was placed on the confirmed list, as was a white site at the junction of Shenton Way and Central Boulevard that can be used to build homes. A white site refers to one that can be used for any function.

This comes as homes in the Orchard Road and Marina Bay areas set new record prices, reaching more than $3,000 psf for both St Regis Residences in Tomlinson Road and Marina Bay Residences.

The Government will also release more residential land in the luxury enclave Sentosa Cove, outside of the official land sales programme.

More office space is also being released to ease the current supply crunch that has sent rents soaring.

An office site at Tampines was put on the confirmed list, while another at Anson Road was placed on the reserve list.

The white site in Shenton Way must also have a minimum number of offices, and it is possible that the whole site would be used for office space, consultants said.

To further meet demand for office space, the Singapore Land Authority will also lease out vacant state-owned properties outside the Central Business District for business use, the MND said yesterday.

As well, in line with the robust demand for hotel sites, three such plots were added to the reserve list yesterday.

Two are along Victoria Street, while the third is in New Bridge Road. This last is likely to be triggered for sale as it is near Chinatown and other hotels, said Mr Li.

Although the Government is providing more land in general, it is doing so cautiously, said market watchers.

Most of the sites on sale are still on the reserve list, noted Mr Colin Tan, head of research and consultancy at Chesterton International.

There are also three white sites available, allowing flexibility for developers to react to any changes in the market, said Ms Tay Huey Ying, director of research and consultancy at Colliers International.  

New sites on offer on reserve list

 1. West Coast Crescent: 1.2ha residential site, to be released in April ‘07

 2. Ang Mo Kio Ave 8: 0.64ha residential site, June ‘07

 3. Anson Road: 0.35ha commercial site, at the junction of Anson Road and Enggor Street, March ‘07

 4. Outram Road: 2.48ha white site, at the junction of Outram Road and Eu Tong Sen Street, June ‘07

 5. Victoria Street: 0.75ha hotel site, at the junction of Victoria Street and Syed Alwi Road, April ‘07

 6. New Bridge Road: 0.42ha hotel site, April ‘07

 7. Victoria Street/Jellicoe Rd: 0.42ha hotel site, at the junction of Victoria Street and Jellicoe Road, May ‘07

Source : Straits Times - 22 Dec 2006

For the first time in five years, the Government has put a slew of land sites up for outright sale, reflecting its belief that the property market has finally rebounded.

Seven sites will be scheduled for sale in the first half of next year, as opposed to being placed on a ‘reserve’ list awaiting bidders.

The ‘confirmed’ sites include a brand-new ‘white site” in red-hot Marina Bay, the Ministry of National Development said in its latest land sales programme.

‘For the Government to put up so many sites on the confirmed list shows that it is optimistic about the property market now,’ said Ms Tay Huey Ying, director of research and consultancy at property firm Colliers International.

Before 2001, all government land sales were ‘confirmed’ - meaning that the Government will schedule the sale of the land, regardless of whether developers have shown any interest in it.

Such sales were suspended in 2001 to avoid adding to the supply of land, after the property market hit one downturn after another.

In the last five years, only one site - the Collyer Quay site sold earlier this week - has been sold via the confirmed list.

All other land was only sold after developers submitted bids for sites on the ‘reserve list” of sites available for sale.

At the top of the unusually long ‘confirmed’ list yesterday was a 1.03ha ‘white site’ in Marina Bay, behind the popular residential project, The Sail @ Marina Bay.

A ‘white site’ can be used for any purpose, such as homes, shops or a hotel. But the Marina site has to include a minimum number of offices.

Beyond that, analysts said, the site is likely to be used for either more offices or homes, as the values of both are skyrocketing in the neighbourhood. Marina Bay Residences sold out at record prices last week, while UIC Building in Shenton Way went on the market at a record price on Wednesday.

Also significant is the first release in five years of two ‘confirmed’ residential sites in Handy Road and Choa Chu Kang, said analysts.

These, along with three other sites on the confirmed list, were already available to developers via the reserve list last year.

The Government said yesterday that selling the Choa Chu Kang plot will help expedite the building of a planned commercial and residential development in the area. The Handy Road site release is also ‘timely’, given the recent completion of the Singapore Management University.

The seventh plot on the confirmed list is the NCO Club and Beach Road Camp site. It was already scheduled for sale later this month but will now only be sold in March.

Yesterday, market watchers welcomed the Government’s cautious use of the confirmed list to sell land, despite the boom in certain segments of the property market.

There should be no fears of oversupply, given that most of the land available for sale was put on the reserve list, they said.

The seven sites on the confirmed list are significantly less than another 32 sites on the reserve list. These will not come on to the market if there are no takers.

These sites include two suburban housing plots, three hotel sites on the city fringe, a ‘white site’ in Outram Road and a commercial site in Anson Road.

The Real Estate Developers’ Association of Singapore (Redas) yesterday said the Government was adopting a ‘pragmatic approach” to releasing land, by keeping the reserve list as its ‘mainstay”.

This approach will allow the high-end property recovery to filter down to the other segments of the market, Redas said.

Source : Straits Times - 22 Dec 2006