Singapore Property | A large private homes residential site has been activated for sale in Queenstown, an indication that developers have land hunger as market sentiment improves.
Urban Redevelopment Authority said on April 10 that a developer committed at least $ 685.25 m bid for the site on Stirling Road measuring 2.11 ha and that can yield approximately 1,110 units.
The site was on the reserve list and unlike the confirmed lists sites that are sold automatically, reserve list sites are only put up for sale after the government receives a bid it accepts.
The Stirling Road site has been on reserve list since 2010 March. It comprises of 2 adjacent sites that were previously offered separately but merged in 2012.
The site, which is on the leasehold of 99 years, is near Anchorpoint shopping center and Tiong Ghee Temple.
Since it is among the large sites offered, analysts are of the opinion that the bid was a reflection of better sentiment in the market and the growing appetite for residential sites by the developers.
“The site was triggered by a developer who believed that the property residential market had a better chance of recovering,” said R’ST Research director Mr. Ong Kah Seng.
Ong Seng noted that a number of developers have a land shortage and they need to show that they have longer-term strategies for corporate growth.
In agreement that the bid was prompted by positive market sentiment and this year’s keen buying interest is the JLL National director of research Mr. Ong Teck Hui.
“The site is likely to attract buyers more easily and generate interest since it is in a prime city-fringe location,” he added.
Analysts are expecting the site to have competitive bidding.
“It has great attributes. For instance, it is only a few minutes walk to Queenstown MRT. However, since the undertaking is big at $685.25 million, the bidding parties are likely to form joint ventures,” said CBRE Head of South East Asia Research, Mr. Desmond Sim.
Analysts are expecting the bids to be between $830 and $950 psf ppr considering that the placed bid is at $718 psf ppr based on the gross floor area that is permissible of 954,328 sq ft.
“The pricing may take a cue from that of Commonwealth Towers average of $1,654 psf or the Queens Peak average price of $1,654 psf,” added Mr. Ong.