Tanjong Katong & Tampines were of the 2 locations released for Government Land Sales
Land plot near Tampines St 62 were published for sale on Thursday afternoon (May 27) under the first half of the 2021 government property sales (GLS) programme.
This follows strong bids placed in by Developers for two other GLS websites earlier this week.
The Urban Redevelopment Authority (URA) website in Jalan Tembusu at Tanjong Katong along with the Housing Board executive condominium site in Tampines Street 62 (parcel B), which can be equally 99-year leasehold sites on the reserve list, can yield approximately 1,340 residential units in total.
Land-starved programmers made a record-setting bid on Tuesday to get Another GLS website along Ang Mo Kio Avenue 1 additionally secured above-market-expectation bids.
The Tengah site brought a record top bid of $400.32 million, or $603.17 per sq feet per plot ratio (psf ppr) in the tie-up between City Developments (CDL) and MCL Land.
PropNex head of research and content Wong Siew Ying stated this was A record property rate for an EC site beneath the GLS programme.
The Government is very likely to dial up the supply from the second-half 2021 GLS programme, as many programmers have sold most of the existing inventory.
“With completions beginning to spike from 2022, many will be. Trying to redeploy their funds, and also the GLS is a pure supply of funding allocation,” they stated.
“Faced with increasing construction costs, programmers will Probably be Eager to ‘push the envelope’ in terms of pricing in 2021, if fresh heating measures are not introduced,” they added.
The Jalan Tembusu site in District 15, a favorite area for many buyers, has”a higher probability of getting triggered, as programmers are starved of well-located sites”.
“The project offers unblocked perspectives, as homes From the vicinity are largely obtained and low-rise progress. If triggered and sold, we estimate the successful tender price to be between $1,400 and $1,500 psf ppr,” he added.
The Jalan Tembusu site, which crosses 1.95ha, is estimated to return 640 units, although the Tampines EC site, which spans 2.8ha, is projected to yield 700 units.
Mr Ong Teck Hui, senior manager of research and Consultancy at JLL, said the website”has powerful locational features, since it’s close to the upcoming Tanjong Katong MRT station, East Coast Park, and comforts along East Coast Road”.
“Based on current market conditions, if the Website is available for tender, we might see 10 to 15 parties bidding for the website, fetching a top bid of around $1,100 to $1,200 psf ppr,” he explained.
But analysts say developers Might Not Be At a rush to trigger the website at Tampines Street 62 (bundle B) as a neighbouring parcel A EC site, whose GLS tender was launched under the supported record in April, has not been marketed yet.
The tender for parcel A will close in July. By then, curious Developers should have a clearer idea about EC land costs in this region, ERA Singapore mind of consultancy and research Nicholas Mak explained.
“Therefore, property developers such as Kingsford wouldn’t be in a hurry to trigger the parcel B website,” he explained.
“The Government is keeping a slow and steady source of EC Property parcels. The Tengah tender has set a new benchmark cost for EC land islandwide.