Bedok site now open for application

Bedok site now open for application
Dec 16, 2009 - PropertyGuru.com.sg

A 99-year leasehold site next to Bedok MRT Station is now open for application by developers through the reserve list of the government. The site is considered by some property consultants to be worth over $500 million.

The 2.49-hectare plot is intended for residential and commercial use. According to analysts, it can be built into a suburban mall with a 500-unit condo and a net lettable area of around 220,000 square feet.

The proposed development will include a new bus interchange to replace the existing interchange within the site.

The plot is stipulated to have a maximum gross floor area (GFA) of 938,157 sq ft. Of this GFA, 338,665 sq ft can be apportioned for the retail component, which translates to a net lettable area (NLA) of around 220,000 sq ft.

The residential GFA of the project could be around 562,900 sq ft. “Based on the simulation for the bus interchange done by Land Transport Authority, the estimated GFA for the bus interchange concourse is 3,400 sq m (about 36,600 sq ft),” said a spokesperson for HDB, who is also the sales agent for the parcel of land.

Li Hiaw Ho, executive director of CB Richard Ellis, points out that it is likely that Bedok MRT Station will be the future Eastern Region Line’s interchange station. “So this is going to be a very busy location. It's ideally suited for another regional shopping centre with a residential component,” he added.

The government earlier said that the development and sale of the site will form part of the renovation plans for Bedok Town Centre.

“Bedok is a good location compared to many suburban areas because it's not that far out. It's a pretty mature town, currently served by older HDB shophouses. However, they are not very well connected and organized; a new mall will draw a lot of retailers as it's going to be connected to the MRT station and integrated with the new bus interchange,” said Danny Yeo, managing director of Knight Frank.

According to the HDB, the plot is situated in the heart of Bedok New Town.

Mr. Yeo argues that the proposed mall is not limited for HDB flat dwellers, but it will also cater to those residing in condominiums and landed homes in the fringe of Bedok. “It will pose quite a bit of a challenge to malls in places like Tampines and Simei,” he added.

He projects the land value for the retail component of the project at around $800-900 psf of possible GFA while Mr .Li of CBRE put the figure at $850 to $900 psf ppr. Either way, the breakeven cost works out to retail NLA of about $2,000 psf. Mr. Li projects about $400 psf ppr of land value for the residential component, which reflects a breakeven cost of about $800 psf.

“They can sell the apartments to recoup part of the investment in the project. This will allow developers more leeway to bid more aggressively for the site,” suggests Mr. Yeo.

Mr. Li has high hopes that the site will be released in spite of the fact that the government is scheduled to launch eight residential sites on the confirmed list in the first half of 2010.