The Urban Redevelopment Authority (URA) will launch a residential site at Hougang Avenue 2 for tender, after it accepted an application from a developer with a minimum bid of $109.9 million, or $241 psf ppr.
The 99-year-leasehold site is on the Reserve List of the government land sales (GLS) programme for H1 2010.
The tender for the 3.02ha site will be launched in two weeks.
With a maximum gross floor area of 455,152 sq ft, the site is earmarked for a low-density condominium, flats or landed housing.
According to several analysts, assuming that a low-rise condo of around 400 units will be built, the top bid could range from $310 psf ppr to $350 psf ppr, which works out to between $141 million and $159 million for the site.
Alternatively, about 200 cluster housing units can be considered for the same land price.
CBRE said that recent launches within the area include the 33-unit Wembley Residences and the 81-unit Residences Botanique, where homes were sold on average for $850 psf and $990 psf respectively in the last six months.
Semi-detached and freehold terrace houses in new cluster projects in the neighbourhood, such as Water Villas, Jansen 8 and Verdana Villas, were sold at $1.8 million to $3 million.
Another 13 sites on the Reserve List of the GLS programme for H1 2010 can be triggered for sale, which includes two executive condo sites and two mixed-use sites, where 5,885 private residential units can potentially be built, said the URA.