The Urban Redevelopment Authority on 10 November launched for sale a 0.48 ha site by public tender. The city fringe residential site is in Queenstown on Margaret Drive near Queenstown and Commonwealth MRT stations.
The site was released under 2H 2016 Government Land Sales Program reserve list. Its maximum gross floor area is 22,195 square meters and has leasehold of 99 years. The site could yield roughly 275 residential units.
The URA made the move after developer sent an application to the URA on November 3 requesting the site to be put up for sale and also committed to making a bid of at least $185.758 million.
Reserve list system requires that a site can only be put up for tender if the government accepts the minimum bid given by a developer.
Other than the two MRT stations that are close by, the site is also near other amenities that include schools, a public library and churches. It is near IKEA Alexandra, Queensway Shopping Centre and Alexandra Central.
The tender for the site will close on December 6. According to URA, any tender that is less than the minimum bid of $185.758 will not be considered.
Analysts are of the opinion that developers will have a keen interest on the site due to its comparatively central location. They are predicting bids of between $780 to $880 psf per plot ratio and about six to 12 bids.
Wong Xian Yang, head of research and consultancy, Orange Tee said that the developers will need to consider a large number of unsold units and potential competition in future.
For instance, Queens Peak is the region while Alexandra View is expected to be launched in 2017.
Nicholas Mak, SLP executive director expects the highest bid to be from $858 to $912 and the site to attract between 7 and 12 bids.
“The Queens Peak site attracted a price of $871 psf ppr in June 2015. Interested developers will use it as a reference,” he said.