ST : Punggol, Seletar sites up for sale

Oct 27, 2010

Punggol, Seletar sites up for sale
By Esther Teo

TWO residential sites in the north-east region were launched by the Government yesterday, potentially yielding another 1,080 homes.

The first is a 2.7ha plot at the junction of Punggol Central and Punggol Walk, while the second comprises a 1.7ha site in Seletar Road, the Urban Redevelopment Authority (URA) announced.

The Seletar site - located next to Far East's The Greenwich project and within the Seletar Hills residential estate - has a maximum permissible gross floor area (GFA) of about 263,059 sq ft and is estimated to yield 270 housing units.

The Punggol land parcel, near Punggol MRT Station and with a maximum permissible GFA of 888,904 sq ft, can potentially host about 810 units.

And it includes the historically and architecturally significant Matilda House, which is to be conserved and restored as part of the residential development.

Built in 1902, the house has an additional GFA of about 4,500 sq ft and is an example of an early-style tropical bungalow. Its distinctive features include entrances on both sides of the main building, raised floors, timber lattice and louvred windows, URA said.

The only remaining historic bungalow in Punggol Town, it can be restored as a clubhouse or for private residential use within the development.

Most experts anticipate robust interest for both plots, with small- to mid-sized developers being particularly keen on the smaller Seletar site, given its 'not-excessive' land cost.

OrangeTee head of research and consultancy Tan Kok Keong expects up to six bids for both sites each. And, while Punggol is likely to attract upgraders from the Sengkang and Punggol, Seletar may well draw in investors banking on the upcoming Seletar Aerospace Park.

'Bearing in mind that the Government will be releasing new land sites for the first half of next year soon, developers will consider that before placing their bids,' he added.

Mr Nicholas Mak, executive director of SLP International Property Consultants, predicts up to nine bids for the Punggol site of between $380 and $420 per sq ft per plot ratio (psf ppr), while Seletar might fetch between $320 and $360 psf ppr from up to seven interested parties.

Cushman and Wakefield's senior manager of Asia-Pacific research, Mr Ong Kah Seng, however, expects 'modest interest' of about three bids for the Punggol site.

'There may be increased competition from another site in Punggol Walk/Punggol Central which will be launched in November and is estimated to provide about 685 units,' he said.

Both Punggol and Seletar sites - whose tenders close on Dec 7 and Dec 14 respectively - form part of the government land sales programme's confirmed list for the second half of the year.