ST : Land use to be reviewed in Concept Plan

Sep 24, 2010

KTM SITES

Land use to be reviewed in Concept Plan

THE future use of the land parcel at Tanjong Pagar railway station as well as the other five plots involved in the historical land swop with Malaysia are to be reviewed under the Urban Redevelopment Authority's Concept Plan next year.

The National Development Ministry has announced that the future use of the plots 'will be reviewed under the URA Concept Plan and Master Plan exercises, and the land parcels will be put to optimal use'.

Next year, URA is due to review its Concept Plan, which maps out Singapore's land use strategies over the next 40 to 50 years and is re-examined every 10 years.

And its Master Plan, which is reviewed every five years and translates the long-term strategies of the Concept Plan into detailed plans over the next 10 to 15 years, is scheduled for reappraisal in 2013.

The land swop deal inked on Monday resulted in Singapore and Malaysia agreeing to swop six parcels in Marina South and the Ophir-Rochor area for six Malayan railway (KTM) sites in Tanjong Pagar, Kranji, Woodlands and Bukit Timah.

Although the developments likely on these sites are uncertain at this stage, a recent Nomura Singapore report suggests that the deal is likely to benefit United Overseas Land (UOL) and Keppel Land as both companies have assets in the areas involved.

It cites Keppel Land as an obvious beneficiary of the development of the Marina South parcels because of its stakes in the upcoming Marina Bay Financial Centre and the Ocean Financial Centre in the Marina Bay area.

But UOL is tipped by Nomura as being the top beneficiary, given that it offers comprehensive exposure to the Rochor and Tanjong Pagar make-over - its new Spottiswoode Park residential project is just behind the Tanjong Pagar railway station.

UOL, which is currently readying its showflat, expects to launch the project by the end of the year.

Although URA's plans for Tanjong Pagar will not be announced before the launch of UOL's project, Nomura expects the potential of the railway station's redevelopment to be reflected in both prices and buyer expectations.

According to the 2008 master plan, a portion of the Tanjong Pagar railway station land parcel is zoned for commercial use with a plot ratio of 4.2, while a large chunk of it is zoned for residential use with a plot ratio of 2.8.

The rejuvenation of the Rochor district, notes Nomura, bodes well for two assets there that UOL has indirect stakes in: The Plaza and The Gateway.

And the development of the Ophir-Rochor land parcels and URA's plans are likely to help rejuvenate Rochor and Tanjong Pagar respectively.

'We believe assets in these areas could see more potential upside versus those in the Marina Bay area, as the latter is already regarded as the new Downtown (with the completion of the Marina Bay Sands and the upcoming MBFC development) and asset values have appreciated accordingly,' Nomura said.

JOYCE TEO


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ROCHOR BOOM

'We believe assets in these areas could see more potential upside versus those in the Marina Bay area, as the latter is already regarded as the new Downtown...and asset values have appreciated accordingly.'

Nomura Singapore report