Moderate bids for 2 Serangoon sites

PHOTO: Moderate bids for 2 Serangoon sites

SINGAPORE - WO residential sites overlooking the Sungei Serangoon river and Serangoon Park Connector with bids closing on the same day were released on Monday.

Experts expect moderate interest under the Urban Redevelopment Authority's new batched tender system, which was introduced in an attempt to moderate bids from developers.

Both sites in Upper Serangoon View have a 99-year lease and are on the confirmed list of the Government Land Sales programme for this half of the year.

Knight Frank research head Alice Tan said developers will be measured in their bids as the tenders for both plots close on the same day. Developers will also have to compete for buyers as the projects on adjacent sites are expected to launch at the same time.

A steady supply of new homes in the vicinity will hit the market over the next four years, she said.

There are eight private condominium projects in the vicinity able to yield 4,840 units and three executive condominium projects with a total of 1,507 homes.

"Given the high number of units to be completed in the next three years, any new demand that could potentially arise for the new units on these two sites remains to be tested," said Ms Tan.

Some developers might also attempt to secure both sites at once to beat the competition, added SLP International research head Nicholas Mak. But as the plots can yield about 900 units in total, only the bigger players might attempt this.

R'ST Research director Ong Kah Seng cautioned that loan curbs have moderated buying interest in the private residential market. This raises the risks for a developer acquiring both sites on top of the huge financing required for such a project.

Bids of $450 to $480 per sq ft (psf) per plot ratio (ppr) can be expected, with between four and six bidders for each site, said Ms Tan. This works out to be about $240 million for Parcel A, which has a site area of 165,141 sq ft, and $180 million for the 128,663 sq ft Parcel B. Units are expected to sell for $950 to $1,000 psf.

Experts also said that buyers who prefer peace and quiet will be drawn to developments which have the river and park connector close by. Nearby amenities include Hougang Mall, Hougang MRT station and schools like Holy Innocents' Primary and Montfort Secondary. The tenders for both sites close on Nov 28.

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