URA as well as HDB have launched two property sites at Jalan Tembusu as well as Tampines Road 62 (Parcel B) for application. The two websites are under the Reserve Listing of the 1H2021 government land sales (GLS) program.
Websites under the Reserve List are not released for tender instantly but are provided for application. A Reserve List site will be installed for tender just when a programmer has actually suggested an acceptable minimum rate. (See: GLS websites at Lentor Central and Tampines Street 62 up for tender).
The 210,624 sq ft website at Jalan Tembusu is 1km from Dakota MRT Station on the Circle Line and also 600m from the upcoming Tanjong Katong MRT Station on the Thomson-East Coast Line. The 99-year leasehold plot is at the joint of Tanjong Katong Road as well as Jalan Tembusu as well as it is linked to Mountbatten Road and also the East Coast Parkway (ECP).
The property website at Jalan Tembusu is a Reserve List site under the 1H2021 GLS programme.
” The story of land at Jalan Tembusu has a high likelihood of obtaining activated as developers are deprived of (readily available) well-located sites. This site beings in District 15, which is a prominent location for many customers,” states Mark Yip, CEO of Huttons Asia.
The relatively large size of the website will come with likewise greater risks, says Nicholas Mak, head of research & consultancy at PERIOD Real estate.
” While it is an appealing website, it would require bigger dedication from the developer as there could be more than 600 devices to be developed. Provided the unclear Covid-19 circumstance and also risk of cooling steps, designers may be reluctant to trigger this exclusive residential land story for tender,” states Mak.
Yip reckons that if the website is set off as well as efficiently offered, the winning price could be between $1,400 psf per plot ratio (ppr) and also $1,500 psf ppr. However, Ong Teck Hui, elderly director of study & consultancy at JLL, states that based on present market problems, the site might draw in up to 15 bids and also fetch a top quote of in between $1,100 psf ppr as well as $1,200 psf ppr.
An executive condominium (EC) site at Tampines Street 62 (Parcel B) has actually likewise been released for application. The 301,391 sq ft plot could be redeveloped into a 700-unit growth. The website has to do with 900m from Pasir Ris MRT Terminal and also is close to green spaces and parks.
The last EC project in Tampines was the 700-unit Parc Central Residences, which launched in January 2021. The project has actually marketed 543 devices (7%) in the succeeding 4 months. EC sites have weathered building cycles relatively well and also are seldom based on building cooling steps.
” In this Covid-19 atmosphere where the supply of labour is uncertain, the 15-month time bar on EC in fact helps. Designers can postpone designating a specialist till the situation is a lot more secure,” states Lee Sze Teck, director (research) at Huttons Asia.
He is not positive that this site will certainly be activated for sale despite its place in a mature estate. “It is unlikely to be triggered yet because the adjoining Parcel A has not been marketed and also designers will want to expand the launch of jobs as well as have a feel of the land bid for Parcel A,” says Lee.
The recently released EC website is adjacent to another EC website that launched in April 2021. (Picture: URA Space).
There are 6 brand-new EC projects presently on the market and the Parc Greenwich task has yet to be launched. The continuing to be EC tasks are more than 50% marketed, with Parc Canberra and also Piermont Grand a minimum of 90% sold as of end-April 2021.
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” The government is maintaining a slow and steady supply of EC land parcels. The EC websites at Yishun Avenue 9 and Tengah Garden Walk were sold in November 2020 as well as May 2021 specifically,” says Mak.
Mak also believes that designers will wait on the close of the tender for the neighbouring land parcel prior to dedicating to the brand-new website. “The tender for Tampines Street 62 (Parcel A) will certainly close in July 2021. Already, interested programmers would have a far better idea concerning the prospective buyers and EC land rates in this location. This expertise will help them to choose whether to cause this website for tender or not,” states Mak.
If the site does obtain caused and is successfully sold, the top bid for the site can be available in between $550 psf ppr and $600 psf ppr, claims Lee.