Yio Chu Kang exec condo site up for tender

THE government on Tuesday launched two executive condominium (EC) sites - one at Yio Chu Kang under the confirmed list for public tender, and another at Sumang Walk for application under the reserve list.

Confirmed list sites are launched according to schedule, regardless of demand, while reserve list sites are launched for tender only upon successful application by a developer.

The confirmed list site is located at Yio Chu Kang Road. The 18,422.9 square metre site has a permissible gross floor area of up to 51,584.12 sq m, and can generate about 520 units, according to the Housing & Development Board.

The tender will close at 12 noon on Feb 18, 2016. Consultants are expecting anywhere from five to 14 bids, with the winning bid ranging from S$260 to S$340 per square foot per plot ratio (psf ppr).

JLL national director of research and consultancy Ong Teck Hui said bidding would be cautious, as EC land prices have fallen in 2015 (averaging S$284 psf ppr), from the previous year (averaging S$351 psf ppr).

That said, the site is surrounded by mature HDB estates which could provide a catchment of potential EC buyers.

The site is not near an MRT station but very accessible by road transport. It is linked to the Central Expressway, Tampines Expressway and Seletar Expressway and well plied by public bus services.

It is also near amenities such as the Hougang 1 mall, a park, sports centre and swimming complex, and schools such as Rosyth Primary School, Xinming Primary School, Xinming Secondary School and Nanyang Polytechnic.

For this reason, DTZ regional head of South-east Asia research Lee Nai Jia believes that the target market for the proposed development on the site will be young families.

The downside may be that "the land parcel is also near Bright Vision Hospital and several voluntary welfare organisations, which may be perceived as disamenities", he said.

SLP International executive director Nicholas Mak also noted that there are very few new 99-year leasehold private condos and ECs in the area.

The nearest EC project was The Vales in Sengkang, some three kilometres away and launched just a few months ago. Given this lack of EC projects nearby, the site might still attract interest, he said.

As for the reserve list EC site at Sumang Walk, the 27,056.4 sq m plot has a maximum permissible gross floor area of 81,169.2 sq m, and can generate a massive 820 units.

It is next to the riverine park My Waterway @ Punggol and within comfortable walking distance to two LRT stations, Sumang and Nibong.

Consultants said the site is expected to garner "lukewarm" interest given the substantial supply of new EC units in the area. This may thus not be sufficient to trigger it for sale in the next six months. But if triggered, it could draw five to nine bids, with a top bid ranging from S$240 to S$310 psf ppr.

Separately, JTC on Tuesday also launched two confirmed list sites at Tampines Industrial Drive (Plot 5) and Tuas South Link 2 (Plot 9) for sale by tender. The 5,077.8 sq m Tampines Industrial Drive site and the 4,802.1 sq m Tuas South Link 2 site both have a 20-year tenure, and a maximum permissible gross plot ratio of 1.4. Both tenders close on Feb 23, 2016, at 11am.

This article was first published on December 30, 2015.
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