ST : Changi residential site up for tender

Mar 13, 2010

Changi residential site up for tender

FAIRLY strong interest from developers is expected in a 99-year leasehold residential site at the corner of Upper Changi Road North and Flora Drive, which will be launched for sale in two weeks' time.

It has been put to tender after an unnamed developer committed to bid at least $82 million, said the Urban Redevelopment Authority yesterday.

The 3.1ha site, which is not near any MRT station, can be developed into a condominium with about 390 units. Analysts expect fairly strong interest from developers, given the buoyant mass market.

They expect the top bids for the site to range from $300 per sq ft (psf) per plot ratio (ppr) to $400 psf ppr.

DTZ South-east Asia research head Chua Chor Hoon, who expects bids to fall between $300 and $350 psf ppr, said the units there could sell for $700 to $750 psf on average.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the site is in a well-established residential area but is some distance from the Central Business District. Also, it is near Changi Prison.

'This land tender could still be quite popular with developers and could attract about six to 10 bids because the mass-market segment could still enjoy steady demand in the next 12 months.'

Mr Mak added that projects in the area, such as Edelweiss Park Condo and Carissa Park Condo, are quite popular with Japanese families as they are near a large Japanese primary school, which means the project could attract both owner-occupiers and investors, he said.

The latest launch in the area, The Gale, drew 294 buyers in July last year who paid a median price of $696 psf.

The Upper Changi Road North site is on the Government's reserve list, which means it is available for sale but is put up for public tender only after a developer pledges to put in a minimum bid.

It was first made available for sale on the reserve list in March 2008.

JOYCE TEO