The Urban Redevelopment Authority (URA) placed a 3ha site in Bukit Chermin into a reserve list of commercial space despite the poor condition of the real estate sector. The site can generate a maximum floor area of 10,000 square meters.
URA says it will be developed into a distinctive lifestyle hotel. The property is located near the Southern Waterfront – the Harbourfront precinct – and Southern Ridges, a greenery spanning 9km across the hills of Mounter Faber, Kent Ridge, Blangah Hill and West Coast Park.
Two bridges, Henderson Waves and Alexandra Arch, were recently constructed to link the three hill parks. The Bukit Chermin site is found amid a hilly setting in an exclusive area of the Southern Waterfront, but it is very accessible from recreational and entertainment venues like Sentosa, ViVoCity and Mount Faber.
Though the Bukit Chermin site has a strategic location, some market analysts think that the present economic downturn will shy away hotel developers.
“The Bukit Chermin site is a very interesting and unique site, with possibilities for a boutique hotel development,” said Chua Chor Hoon, senior director of DTZ Research.
However, Chu Chor added that the tight credit condition and market uncertainties would make it difficult to attract bidders.
One property consultant, said URA itself is not upbeat on getting sufficient bids to launch a tender. But he added that there is nothing wrong with the move, as there is always a possibility to get an unexpectedly high bid.