A commercial and residential site located at the junction of Choa Chua Kang Road and Woodlands Road has just been launched. Analysts expect a strong bid for the first-ever government land sales tender.
The Ten Mile Junction shopping mall, which currently sits on the site, will be integrated with the Ten Mile Junction LRT station and transformed into a residential and commercial development, if a developer succeeds in purchasing the land.
“The key driving factor for this site is going to be the MRT station, rather than the LRT station,” explained Tay Huey Ying, Research & Advisory director for Colliers International.
“So, I think the close proximity of this site to the upcoming Bukit Panjang MRT station will really raise the attractiveness of this site, compared to when it was tendered out in 2008.”
The exercise in 2008 failed when the site was not awarded to the developer who offered $61 million, the top bid at the time.
The 99-year leasehold site has a maximum permissible gross floor area of over 23,000 sq ft and an area of approximately 1.56 hectares.
Consultant CB Richard Ellis expects the bids to range between $135 million and $150 million.
The residential project units could sell for $650 to $700 per sq ft. The take up will be healthy as the site is not large, said the analysts.
“One thing good about non-large sites is that you get more people, even the smaller developers, and the middle-range size developers (are) willing to bid for such sites,” said Director Chris Koh of Dennis Wee Group.
This land parcel will be the first residential site to be sold through the Government Land Sales Programme’s Confirmed List for H1 2010.
According to analysts, it is possible for this new development to attract people who work in Choa Chu Kang, Bukit Panjang and Woodlands areas, as well as HDB upgraders.
The Urban Redevelopment Authority will close the tender on February 23. The successful bidder will be selected based on the tendered land price only, it said.