A 2.3ha mixed development site at Holland Village will be put up for sale next month, and authorities are exploring several sales mechanisms for such a site, media reports said.
Notably, the Urban Redevelopment Authority (URA) holds industry consultations prior to putting “strategic sites” up for sale in order to understand how the market will respond to various sales mechanisms.
To preserve the charm of Holland Village, touted as Singapore’s bohemian enclave, property watchers said authorities can sell the plot via the two-envelope tender system or the Concept and Price Revenue tender system.
Typically, the government sells land via the price-only method in which the highest bidder wins. But for particular sites, the government will assess developers on more than what they can afford.
For instance, under the two-envelope tender system, developers are required to submit concept plans of the site they bid for.
The proposals are then evaluated using criteria such as business concepts, quality of architecture and developers’ track record. Developers who submit proposals which satisfy the evaluation criteria will then be shortlisted, and the site will be awarded to the highest bidder.
“The so-called two-envelope system is typically used in situations where the government either wishes to preserve a certain characteristic of that development site, or there are already some existing architecture or buildings on that site the government wishes to conserve,” explained SLP International Property Consultants executive director of research and consultancy, Nicholas Mak.
“That way, equity muscle will not be the sole determinant for the award of the (Holland Road) site,” noted Desmond Sim, head of CBRE Research, Southeast Asia.
“Through the double-envelope concept, concerns from the public, such as the final intended use of the space and the design of the building, for this prominent site can be safeguarded,” Sim added.
Romesh Navaratnarajah, Singapore Editor of PropertyGuru Group, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
