Demands for residential land has spread to the landed sector from the non-landed sector. For the first time in 2009, a developer has initiated the sale of a government landed housing site and consultants expect to see extensive competition for the site.
The 99-year leasehold site with 14,098.9 square metres located at Westwood Avenue is included on the government reserve list. Landed estates such as The Floravale condominium and Westwood Park surround the plot. It is also near the Pan-Island Expressway.
An unidentified developer has promised to bid $99 per square foot (psf) for the land area or at least $15 million for the entire site. HDB will launch the proposal for the plot in two weeks. Several property consultants expect to witness at least five bids for the said site.
Chua Chor Hoon, DTZ head for South-east Asia research, said there will be 10 bids. “There are not many landed homes in the west, and there is demand not just from HDB upgraders, but also from those working nearby in Nanyang Technological University and the industrial estates.”
Tay Huey Ying, Research and Advisory Director of Colliers International, believes the site can draw five to eight bids because only few “’mass-market landed sites’” are available in the market.
Christine Sun, Research and Consultancy Senior Manager of Savills Singapore said the upcoming development project of Jurong Lake District can result to more employment opportunities and commercial activities in the area, implying greater housing demand and higher rental yields.
Widespread estimates were made for the winning bid. DTZ anticipates that the site can build about 50 to 55 terrace houses, with a top bid of about $25–30 million or $165–200 psf of land area.
This could lead to a breakeven cost of $295–330 psf. Each unit may then be sold for $580–680 psf or $1.1–1.2 million.
Savills Singapore also believes the site can hold up to 60 terrace units, with indicative bids ranging from $16.7 million to $21.2 million or approximately $110–140 psf of land area.