Public tender launched for residential site at Irwell Bank Road

By
/ EdgeProp Singapore
|
October 31, 2019 5:27 PM SGT
SINGAPORE (EDGEPROP) - The URA has launched the public tender for a residential site at Irwell Bank Road under the Confirmed List of the 2H2019 Government Land Sales Programme.
Located at the junction of River Valley Road and Irwell Bank Road, the 137,656 sq ft site has a gross plot ratio of 2.8 under the 2019 Draft Master Plan. The new development can have a maximum gross floor area of 385,444 sq ft, with a building height restriction of 36 storeys. The new residential development could yield up to 445 units, according to URA.
The site is close to the Orchard Road shopping belt, and will be in proximity to the upcoming Great World MRT Station on the Thomson-East Coast Line.
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 The new residential development could yield up to 445 units (Picture: URA website)
The new residential development could yield up to 445 units (Picture: URA website)
According to Tricia Song, head of research for Singapore at Colliers International, “[this site] is the most appealing one on the GLS slate for the second half of 2019 – and will attract developers who are keen to add a rare, sizeable residential site in the prime District 9 to their development pipeline.”
However, bidders will be cautious given the relatively large quantum required for the site, and four to six bids will be submitted, she estimates, adding that this is “in line with the average five bids for residential sites costing over $300 million since the cooling measures were implemented in July 2018”.
A possible top bid could range from $650 million ($1,700 psf per plot ratio or ppr) to $680 million ($1,770 psf ppr). This is relatively similar to the land rate of $1,733 psf ppr for the government tender of the Jiak Kim Street site, which is now slated for Riviere by Frasers Property, says Song.
The 455-unit Riviere has sold 45 units at a median price of $2,850 psf since it was launched in May this year, while the nearby Martin Modern, another GLS site, has sold 353 units (78%) of its total inventory since its launch in July 2017. Prices at Martin Modern have risen steadily from $2,152 psf at launch to over $2,600 psf to date.
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 The site is close to the Orchard Road shopping belt, and will be in proximity to the upcoming Great World MRT Station (Picture: URA website)
The site is close to the Orchard Road shopping belt, and will be in proximity to the upcoming Great World MRT Station (Picture: URA website)
Both local and foreign developers will be drawn to the Irwell Bank GLS site, especially those with a reputation for high-end residential developments, says Nicholas Mak, head of research and consultancy at ERA Realty.
There is limited competition from other new developments in the vicinity, and the only new launch expected in the area is The Avenir, a redevelopment of the former Pacific Mansion and about 650m from the subject site. Other condos surrounding the GLS site are more than 10 years old, such as The Tiara, The Cosmopolitan, and Rivershire, he adds.
The tender for this site will close on Jan 9, 2020, along with a separate residential site at Jalan Bunga Rampi which was launched for sale in August this year.
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