Developers in Singapore are fighting over this plot of land
Developers in Singapore are fighting over this plot of land
Competition is expected to be fierce for this government tender
Singapore has opened up a highly coveted site around Fernvale Road for tender, in the first of four land parcels up for grabs under the Government Land Sales programme for the second half of the year.
Up to 10 property developers are expected to jump on the parcel, which covers 17,196 square metres in a strategic area near the Thanggam LRT station, Sengkang Riverside Park, and The Seletar Mall, according to a report by Straits Times. The tract of land could yield about 605 private units.
Bids for the site could reach as high as SGD244 million (USD181 million) to SGD272 million (USD202 million), according to SLP International executive director Nicholas Mak.
Desmond Sim, who heads CBRE Research for Singapore and Southeast Asia, said that the tender is an opportune time for property developers to expand their land banks. “Competition will be keen, especially from developers who have not been awarded any residential sites for the past few tenders,” Sim said.
Ong Teck Hui, national director for research and consultancy at Jones Lang LaSalle, believes that bidding for the site will be competitive since developers are anticipating Singapore’s residential market to bottom out.
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Developers are also keen on the site after the strong showing of condominium units around the area. Mak reported that units around the Fernvale Road area sold between SGD970 (USD722) per square foot and SGD1,060 (USD789) per sq ft in the first seven months of the year.
Developers may also want to follow the lead of the High Park Residences, which sits on two parcels by the Fernvale Road acquired in 2014 for SGD234.9 million (USD174.6 million) and SGD252.1 million (USD187.4 million). The average price for a unit in High Park Residences is SGD988 (USD735) per sq ft.
Sales of new private homes around the city-state hit a peak unseen since July 2015, according to the Urban Redevelopment Authority. Around 1,091 new units, not including those categorised as executive condominiums, were sold in July 2016, compared with 1,655 units last year.
Aside from the Fernvale Road parcel, the government will also put up sites in Perumal Road, West Coast Vale and Upper Serangoon Road for sale before the end of the year.
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Source: Property Report