A land parcel at one-north Gateway has been launched for public tender under the 1H2019 government land sales (GLS) programme. The 62,201 sq ft site is zoned for residential with commercial on the first storey, and can accommodate a maximum gross floor area (GFA) of 155,506 sq ft. It is the smallest site on the confirmed list of the 1H2019 GLS programme, and has the potential to house 165 units.
The site is next to one-north Residences which was completed in 2009, and the new development should supplement the housing demand generated by the growing working population in the one-north technology enclave, says Tricia Song, head of research for Singapore at Colliers International. The size of the site is also “palatable” and could appeal to niche developers, she adds.
Lee Sze Teck, head of research at Huttons Asia, expects the site to attract a top bid of $900 to $950 psf per plot ratio (ppr), which translates to about $140 million to $150 million. He says: “More than 50,000 people work in one-north with foreigners making up the majority. Yet the number of residential homes has stayed stagnant.”
The site is expected to draw eight to 10 bidders, says Christine Sun, head of research and consultancy at OrangeTee & Tie. “Residential sites with a commercial component remain popular among developers, given its rarity, attractive rental yield and convenience enjoyed by both residents and tenants,” she says. “Given that this development may attract many investors, the development may comprise of a number of smaller-sized units which could be sold at a higher psf price of between $1,900 psf and $2,000 psf for these units.”
Two reserve List sites open
At the same time, two land parcels under the 1H2019 GLS reserve list are open for tender. Located at Hillview Rise and Dunman Road respectively, both are residential sites.
The Dunman Road site is beside Dakota MRT Station on the Circle Line. It is the “most attractive” site on the current reserve list, says Song, given its proximity to the MRT station, unblocked views of East Coast, proximity to the CBD, as well as good schools and the Singapore Sports Hub.
But a concern for developers could be its relatively large land size of 271,624 sq ft that can accommodate 1,040 buildable units, she adds. “We expect this site to appeal to larger developers or joint ventures and could attract a top bid of $1.1 billion, or $1,160 psf ppr – this could pave the way for a new benchmark pricing for the area,” she says.
The Hillview Rise site is beside another GLS site that was awarded to Hong Leong Group on a concept-and-price dual-envelope basis in July last year. Hong Leong submitted a bid of $460 million ($1,068 psf ppr) for that site. The current Hillview Rise site is 111,893 sq ft and can house up to 340 units.
Ample supply
However most consultants feel that it is unlikely for the sites on the reserve list to be triggered for sale. “Given the increasing supply of new homes, most developers may be less active in their land acquisition. Some may prefer to pare down their existing stock before expanding their current land bank,” says Sun of OrangeTee & Tie.
The tender for the land parcel at one-north will close on Sept 5, and the closing will be batched with two other GLS sites at Tan Quee Lan Street and Bernam Street.