Two GLS sites launched for sale; another two in reserve

/ EdgeProp Singapore |

June 28, 2018 11:54 PM SGT

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The last two residential development sites under the Confirmed List of the 1H2018 Government Land Sales (GLS) Programme was launched for sale by public tender on June 28. They were the condo development site at Jalan Jurong Kechil and the executive condo (EC) development site at Canberra Link in Sembawang.

The Jalan Jurong Kechil site has a land area of 14,234.9 sqm (153,223 sqft) and can yield a maximum gross floor area (GFA) of 19,929 sqm (214,513 sqft). The site can be developed into a new five-storey residential project with 280 units.

It’s located close to the German European School Singapore, Pei Hwa Presbyterian Primary School and Glory Kindergarten. Other amenities nearby include Beauty World, Bukit Timah Shopping Centre and Bukit Timah Nature Reserve. It’s a 10- to 15-minute walk to the Beauty World MRT station.

The land parcel at Jalan Jurong Kechil can be developed into a 280-unit residential project (Credit: URA)

Nicholas Mak, executive director of ZACD Group reckons the site could see five to eight bids, with bid prices in the range $182 million to $204 million, or $850 to $950 psf per plot ratio.

The EC site at Canberra Link has a land area of 18,042 sqm (194,202 sq ft) and can be developed into a project with a maximum GFA of 485,505 sq ft. The new development could have a maximum of 450 units and a height of 12- to 14-storeys.

According to Mak, the advantages of the site include its fairly close proximity to the Canberra MRT station; schools such as Sembawang Primary and Wellington Primary; and Canberra Plaza and Sembawang Shopping Centre.

“The number of launched and unsold EC units has been declining since March 2017 due to a shortage of new EC launches this year,” notes Mak. In 2018, only one EC project was launched – Rivercove Residences at Anchorvale Lane in Sengkang - which is 98% sold. He therefore expects “strong demand and aggressive bids” for this EC site.

Turnout on balloting day at Rivercove Residences, the sole EC project to be launched in 2018 (Credit: Huttons Asia)

The last EC site which was sold in February 2018 was Sumang Walk in Punggol, that attracted 17 bidders. The winning bid was $509.37 million, jointly submitted by City Developments Limited (CDL) and TID. It worked out to about $583 psf ppr.

Another EC site on the Confirmed List is in Tampines Avenue 10 and is slated for launch in Oct 2018.

Although developers are spoilt for choice with the many en bloc sites on the market, there is a relatively longer due diligence and legal process to acquire such sites, notes Mak. “There is always the risk of protracted legal tussle in en bloc sales. Some developers therefore prefer the simpler and quicker mode of sale for GLS sites.”

Mak: Some developers may prefer the simpler and quicker mode of sale for GLS sites (Credit: ZACD Group)

Two more residential development sites were made available for application under the Reserve List of the Government Land Sales (GLS) Programme for 1H 2018: A condominium development site at Clementi Avenue 1 and an EC development site at Anchorvale Crescent.

The site at Clementi Avenue 1 has a land area of 178,075 sq ft and can yield a maximum GFA of 623,262 sq ft. It can be developed into a 640-unit condominium project. The site is close to popular schools such as NUS High School of Mathematics and Science, Nan Hua Primary School, Nan Hua High School, National University of Singapore Campus, Singapore Polytechnic, International Community School. A disadvantage of the site is that it is relatively far from Clementi MRT station, points out Mak.

The GLS site at Clementi Avenue 1 can be developed into a 640-unit condominium project (Credit: URA)

If launched within the next two months, Mak estimates land bid prices to range from $654 million to $717 million ($1,050 to $1,150 psf ppr). Due to the limited upcoming supply of private non-landed residential units in the vicinity, Mak expects the tender to “draw healthy interest from property developers”.

The EC site at Anchorvale Crescent has a land area of 184,461 sqft and can be developed into a 550-unit project. It’s close to Cheng Lim LRT station, Sengkang MRT station, Sengkang General Hospital and Community Hospital. It’s adjacent to Treasure Crest, which saw brisk sales at launch.

Mak estimates land bid prices to range from $250 million to $305 million ($452 psf ppr to $551 psf ppr). Due to the limited supply of EC sites and EC units, this tender could draw strong interest from many developers. He reckons the tender could draw 10 to 15 bidders.

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