Updated from : The Business Times, 16 Apr 2021
THE Urban Redevelopment Authority (URA) and the Housing & Development Board (HDB) on Thursday launched two sites at Lentor Central and Tampines Street 62 (Parcel A) for tender.
Both sites, which have a lease period of 99 years, fall under the confirmed list in the first half 2021 government land sales (GLS) programme. Together, they can yield about 1,195 residential units, URA and HDB said in a joint press statement.
Property analysts from Huttons, PropNex, JLL and ERA Realty expect eight to 13 bidders for the Lentor Central site and a top bid of around S$880 to S$1,050 price per square foot per plot ratio (psf ppr).
The URA parcel at Lentor Central, which is expected to yield about 605 units, has a site area of 17,279.9 square metres (sq m) and a maximum gross floor area (GFA) of 60,480 sq m. The plot is zoned for residential with commercial at the first storey use. The maximum building height is 35 metres Singapore height datum (SHD) in the low-rise zone, and 107 metres SHD in the high-rise zone.
Huttons Asia director of research Lee Sze Teck holds the view that the Lentor Central plot is “probably the best site” under the first half of 2021 GLS programme. He noted there will be pent-up demand as the last launch in the area was The Calrose in 2005.
“The commercial component will provide much-needed amenities to the area and future developments,” he said.
JLL senior director of research and consultancy Ong Teck Hui expects bidding for the site to be “highly competitive”, given the current market upswing, the attractiveness of the site, and the absence of new supply in the area.
As for the Tampines Street 62 site, property analysts estimate between six and 10 bidders, with a projected top bid of about S$550 to S$620 psf ppr.
The executive condominium (EC) site, projected to yield 590 units, has a site area of 23,799.2 sq m and a maximum GFA of 59,498 sq m. It is zoned for residential use and has a maximum building height of 63 to 64 metres SHD.
PropNex head of research and content Wong Siew Ying expects the site to garner keen interest from developers, given the popularity of ECs among Singaporean home buyers, particularly those looking to trade up from public housing.
Nicholas Mak, ERA Realty head of research and consultancy, said as sales momentum continue, some developers may run out of new residential properties for sale.
“Therefore, if the government does not increase the supply of residential land in the next GLS programme, land price will increase which will fuel further price growth in the property market,” he noted.
Both sites were carried over from the reserve list of the second half of 2020 GLS programme. Confirmed list sites are launched according to schedule regardless of demand. In contrast, a reserve list site is put up for tender when a developer makes an offer acceptable to the government.
The tender for the Lentor Central and Tampines Street 62 (Parcel A) plots will close at 12pm on July 22 at URA and HDB respectively.