In Singapore, the reserve list of the government triggered a 99-year leasehold area for release. The developers plan to replenish the land banks with suburban condominium lands following the accumulation in residential sales.
Other successful applications from the developers are expected by market watchers for the establishment of reserve-list sites within the next few months. The most recent plot is appealingly situated at Serangoon Avenue 3, near the Lorong Chuan MRT Station and the Australian International School.
An unnamed developer has agreed to bid not less than $83.7 million or around $200 per sq ft per plot ratio (psf ppr) for the location, which consultants agree to develop into a condo with almost 300 to 370 units, varying on mixes and sizes of units.
Consultants surveyed by BT usually expect the highest bids for the exact site to be within the range of $350 to $450 psf ppr, with resulting costs of $700-$850 psf and an average intended selling prices of $800 to $1,100 psf.
Chua Chor Hoon, head of DTZ for Southeast Asia research, explains that units in Amaranda Gardens and the Goldenhill Park Condo had conducted business at almost $810 psf up to $950 psf three months ago.
In about two weeks, the Urban Redevelopment Authority will be launching the bid for the site.
A week ago, the proposed payment for a condominium plot at Chestnut attracted 13 bids. Other two reserve list locations were recently triggered.
The government will release a site in the reserve list for proposed payment only upon application by developers, offering the amount that is acceptable to the country. Still obtainable on the reserve lists are sites that can produce condos close to Bedok, Bishan, and Bartley MRT stations. Plots are also offered in some places like Upper Thomson, Jalan Jurong Kechil, Yishun, Tampines, and Upper Changi Road North.
A good measure of resistance and affordability levels will come out this week, when NTUC Choice Homes previews its 590-unit Trevista condominium situated in Toa Payoh.