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SINGAPORE – The first executive condominium (EC) site in Tengah and a condo site at Ang Mo Kio went up for sale on Thursday (Nov 26) as part of the second half of the government land sales program ( GLS) of 2020.
Both residential sites are on the GLS program’s confirmed list, which was released in June.
The two sites combined can produce around 985 residential units, although the actual number may vary depending on developers, the Urban Redevelopment Authority (URA) and the Housing Board (HDB) said Thursday.
Sites on the confirmed list are launched on schedule regardless of demand, while a site on the reserve list is put up for tender when the minimum price indicated by the developer is acceptable to the Government.
The Tengah parcel at Tengah Garden Walk, a road that has yet to be built, has an area of around 22,020 square meters and a maximum gross area (GFA) of 61,659 square meters. The 99-year-old lease site is expected to yield some 615 EC units.
Located alongside the upcoming Garden Vines @ Tengah Build-To-Order (BTO) project, it will be the first EC housing project in the “forest town” of Tengah.
JLL Senior Director of Research and Consulting Ong Teck Hui said developers are likely to view the EC market “favorably” as there are only four EC projects in the launch portfolio and demand could pick up. in better market conditions next year.
“While the Tengah parcel is in a relatively less developed area, it could be in fair demand due to the lack of new EC projects in the west and could offer the first-mover advantage for the successful bidder,” he said Ong.
He noted that the last time a CE site was sold in the area was the Sol Acres parcel in Choa Chu Kang in March 2014.
ERA Realty’s head of research and consulting, Nicholas Mak, estimated that the site could attract six to nine offers, with the maximum bid ranging from $ 331.8 million to $ 352 million, translating to a ratio of $ 500 to $ 530 per square foot per plot (psf ppr).
The parcel of land at Ang Mo Kio is located at Ang Mo Kio Avenue 1 with a site area of 12,679 square meters and a GFA of 31,699 square meters. The 99-year-old lease site is estimated to produce around 370 units.
Ms Wong Siew Ying, Head of Research and Content at PropNex, noted that it is the last GLS site to be offered in the area in six years, as the sites of two condo projects – Thomson Impressions and The Panorama – were successfully awarded for $ 173.6 million. ($ 731 psf ppr) and $ 550 million ($ 790 psf ppr) respectively.
She said that in addition to being in a mature city and established residential area, the parcel is also close to the upcoming Mayflower MRT station on the Thomson-East Coast line.
She predicted that demand for the site would be “buoyant” and attract more than 10 bidders, with the maximum bid at $ 273 million to $ 290 million or $ 800 to $ 850 psf ppr.
URA and HDB will offer a longer tender period of six months to allow developers more time to conduct their assessment in light of the current Covid-19 situation.
The tender for the two parcels of land will close at noon on May 25, 2021.
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