A 99-year leasehold piece of land along Dairy Farm Road was released for bidding yesterday under the determined list of the Government Land Sales (GLS) programme. It is anticipated to see huge interest from property developers, said market watchers. The developers of One North Eden may also be taking part in the bid.
There is also a strong prospect that 2 reserve list sites – 1 in Sims Drive, which is the current Penrose location, and the other in Tampines Avenue 10 – will be triggered for bidding, they added.
Collectively, the 3 sites can results in some 1,880 housing units.
Land parcels on the confirmed list are released on schedule while plots on the reserve list that become ready for application are activated for sale only when it receives the minimum acceptable bid.
“All 3 land parcels should find favour with real estate developers, considering the improved market sentiment and excellent absorption of new supply,” said head of research at Colliers International Miss Tricia Song. Improved market sentiment is apparent seeing low left over units on the One North Eden Balance Units Chart.
Singapore head of research and consultancy at JLL, Mr Tay Huey Ying, noticed the Dairy Farm Road parcel could even become a benchmark rate for GLS land sites in the Bukit Panjang/Hill-view/Dairy Farm/Bukit Batok vicinity.
The close proximity to Hillview MRT station and the main expressways, as well as the strong demand from expatriates for leasing in the region, are reasons why the plot may prove to be a hot topic among property developers, she said.
The previous time a residential GLS site was transacted in the zone was in 2012 to develop into The Skywoods, led by a consortium of TA Corporation for $616 per square feet per plot ratio (psf ppr).
The latest record GLS land rate ($805 psf ppr) in the Hillview/Bukit Panjang/Dairy Farm/Bukit Batok locality is maintained by the land plot on which Hillion Mall and Hillion Residences stands. Housing units within Hillion Residences have commanded average rates of $1,496 psf this year, noted Miss Tay. This makes One North Eden prices, which is located in a better location, affordable and attractive.
Huttons Asia head of research, Mr Lee Sze Teck, sensed that positive market sentiment, property developers’ interest in toping up their land bank, the shortage of new supply in the region and other excellent locational attributes will contribute to eager interest in this GLS site along Dairy Farm Road.
“It may draw attention up to 10 bidders and the highest bid of between $900 and $1,000 psf ppr,” said Mr Lee.
The Dairy Farm Road site, which can yield around 500 units, is zoned as residential use, with commercial use on the first floor that is limited at 4,000 square meters. At least 500 square meters of gross floor area (GFA) have to be put aside for a childcare centre. With written approval beforehand, a combination of apartments with strata landed houses is allowed. That’s why the Dairy Farm Residences was eventually built here.
Miss Song expects the highest bid to come in at $880 to $950 psf ppr.
On the same note, if the Sims Drive land is activated for sale, property consultants expect it to attract a top bid of as high as $1,200 psf ppr. Under the URA Master Plan 2014, it is the final parcel of land zoned for residential buildings in Sims Avenue, said Mr Lee.
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