Pasir Ris Central white site up for sale under GLS programme

By BONG XIN YING / EdgeProp | August 28, 2018 5:32 PM SGT
A 3.8-hectare, 99-year leasehold white site at Pasir Ris Central was launched for sale by public tender on Aug 27. The sale is a dual-envelope exercise under the confirmed list of the government land sales (GLS) programme for the second half of 2018.
Location of the land parcel at Pasir Ris Central up for sale by public tender (Credit: HDB)
The site is the fourth to be launched for sale this year under the concept and price revenue tender system, similar to that of the Sengkang Central GLS site which the CapitaLand-City Developments Ltd joint venture won for $777.78 million ($924 psf ppr) in August; the Hillview Rise GLS site which Hong Leong Group bagged for $460 million ($1,067 psf ppr) in July; and the Holland Road GLS site won by a Far East Organization-led consortium with a bid of $1.213 billion ($1,888 psf ppr) in May.
The mixed-use development will comprise a commercial and residential development integrated with a bus interchange, a polyclinic and a town plaza. It can potentially yield a maximum of 600 private residential units. The development comes under the “Remaking Our Heartland” (ROH) plan for Pasir Ris Town, which was unveiled in April 2017.
“It will be the first mixed-use development – commercial and residential – in the Pasir Ris town centre,” says Tricia Song, head of research for Singapore, Colliers International. “The white site is part of the government’s plans to rejuvenate the Pasir Ris district.” Its proximity to the Pasir Ris MRT station and large population catchment should appeal to developers, she adds.
The land parcel spans 38,003.7 sq m (409,070 sq ft), and is next to Pasir Ris MRT station. It has a maximum permissible gross floor area of 95,010 sq m (1.023 million sq ft), with a proposed gross plot ratio of 2.5, according to HDB.
Colliers International’s Song estimates that the site would “attract 4-8 bids with the top bid of $820 million ($800 psf per plot ratio).”
This compares with the most recent Sengkang Central tender which attracted 7 proposals from 6 bidders with a top bid of $778 million ($924 psf ppr), adds Song.
However, Christine Sun, head of research and consultancy at OrangeTee & Tie, notes that the price “could be slightly lower than Sengkang, as Sengkang is a more popular area among buyers, especially given the amenities and development potential of Punggol nearby.”
“Given the substantial size of the plot and various tender conditions, we think this site could likely attract larger developers or a consortium of them working together,” says Colliers International’s Song. The tender conditions include integrating the mixed-use development with a bus interchange, a polyclinic and a town plaza, as well as constructing a link bridge and underground linkway.
The tender will close at noon on December 14.