GLS sites at Jalan Tembusu and Tampines St 62 released for application
By Timothy Tay
/ EdgeProp Singapore |
SINGAPORE (EDGEPROP) - URA and HDB have released two residential sites at Jalan Tembusu and Tampines Street 62 (Parcel B) for application. The two sites are under the Reserve List of the 1H2021 government land sales (GLS) programme. (See: Find HDB flats for rent or sale with our Singapore HDB directory)
Sites under the Reserve List are not released for tender immediately but are made available for application. A Reserve List site will be put up for tender only when a developer has indicated an acceptable minimum price. (See: GLS sites at Lentor Central and Tampines Street 62 up for tender)
The 210,624 sq ft site at Jalan Tembusu is 1km from Dakota MRT Station on the Circle Line and 600m from the upcoming Tanjong Katong MRT Station on the Thomson-East Coast Line. The 99-year leasehold plot is at the junction of Tanjong Katong Road and Jalan Tembusu and it is connected to Mountbatten Road and the East Coast Parkway (ECP).
The residential site at Jalan Tembusu is a Reserve List site under the 1H2021 GLS programme. (Picture: URA)
“The plot of land at Jalan Tembusu has a high probability of getting triggered as developers are starved of (available) well-located sites. This site sits in District 15, which is a popular area for many buyers,” says Mark Yip, CEO of Huttons Asia.
The relatively large size of the site will come with correspondingly higher risks, says Nicholas Mak, head of research & consultancy at ERA Realty.
“While it is an attractive site, it would require bigger commitment from the developer as there could be more than 600 units to be developed. Given the uncertain Covid-19 situation and risk of cooling measures, developers might be hesitant to trigger this private residential land plot for tender,” says Mak.
Yip reckons that if the site is triggered and successfully sold, the winning price could be between $1,400 psf per plot ratio (ppr) and $1,500 psf ppr. However, Ong Teck Hui, senior director of research & consultancy at JLL, says that based on current market conditions, the site could attract up to 15 bids and fetch a top bid of between $1,100 psf ppr and $1,200 psf ppr.
An executive condominium (EC) site at Tampines Street 62 (Parcel B) has also been released for application. The 301,391 sq ft plot could be redeveloped into a 700-unit development. The site is about 900m from Pasir Ris MRT Station and is close to green spaces and parks.
The last EC project in Tampines was the 700-unit Parc Central Residences, which launched in January 2021. The project has sold 543 units (7%) in the subsequent four months. EC sites have weathered property cycles relatively well and are seldom subject to property cooling measures.
“In this Covid-19 environment where the supply of labour is uncertain, the 15-month time bar on EC actually helps. Developers can delay appointing a contractor till the situation is more stable,” says Lee Sze Teck, director (research) at Huttons Asia.
He is not confident that this site will be triggered for sale despite its location in a mature estate. “It is unlikely to be triggered yet because the neighbouring Parcel A has not been sold and developers will want to spread out the launch of projects and have a feel of the land bid for Parcel A,” says Lee.
The newly launched EC site is adjacent to another EC site that launched in April 2021. (Picture: URA Space)
There are six new EC projects currently on the market and the Parc Greenwich project has yet to be launched. The remaining EC projects are more than 50% sold, with Parc Canberra and Piermont Grand at least 90% sold as of end-April 2021.
Discover all features of new condo launches in 2021 with our detailed virtual tour.
“The government is maintaining a slow and steady supply of EC land parcels. The EC sites at Yishun Avenue 9 and Tengah Garden Walk were sold in November 2020 and May 2021 respectively,” says Mak.
Mak also reckons that developers will wait for the close of the tender for the neighbouring land parcel before committing to the new site. “The tender for Tampines Street 62 (Parcel A) will close in July 2021. By then, interested developers would have a better idea about the bidders and EC land prices in this location. This knowledge will help them to decide whether to trigger this site for tender or not,” says Mak.
If the site does get triggered and is successfully sold, the top bid for the site could come in between $550 psf ppr and $600 psf ppr, says Lee.
Check out the latest listings near Jalan Tembusu, Tampines, Parc Central Residences, Parc Greenwich, Parc Canberra, Piermont Grand, Dakota MRT Station, Tanjong Katong MRT Station, Pasir Ris MRT Station
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