Two residential sites which could offer 1,180 condo units were released for sale on Wednesday, revealed the Housing and Development Board (HDB).
Launched under the confirmed list of the first half 2015 Government Land Sales (GLS) Programme, the sites are located at Lorong 6 Toa Payoh/Lorong 4 Toa Payoh and Dundee Road in Queenstown.
The Toa Payoh site measures 12,154.6 sqm with a maximum gross floor area (GFA) of 42,541.1 sqm, while the 10,516.1 sqm Dundee Road plot has a maximum GFA of 51,528.9 sqm. When fully developed, they are likely to yield 535 and 645 homes respectively.
“Between both sites, the Toa Payoh site is expected to garner more interest among developers due to its smaller size and lower price which leads to an overall smaller quantum. Furthermore, there is a lack of new launches in the area recently,” said OrangeTee research manager Wong Xian Yang.
In fact, the previous GLS site to launch in the area was back in 2008. It currently houses the Trevista condominium.
“We expect keen participation from developers given that primary sales demand for this area has not been tested yet post TDSR. We expect the winning bid to range from $670 to $740 psf ppr,” Wong noted.
But he is cautiously optimistic on the bidding participation for the Dundee Road site considering the relatively large overall quantum area and lukewarm performance of nearby projects.
He shared that the most recent tender exercise within the area was the Commonwealth Avenue site which closed in February 2013 and attracted only three bids.
However, more bids are expected this time due to the smaller overall quantum of the Queenstown site.
“The winning bid price is not expected to surpass the $500 million mark, and this should open up the tender to a wider pool of developers.
“Bids are expected to be cautious, in view of the neighbouring Commonwealth Towers unsold units (478 units as of March 2015). We expect the winning bid to range from $750 to $820 psf ppr,” added Wong.
Image: Location of the Toa Payoh land parcel. (Source: HDB)
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
