ST : Good sites on offer from Govt

Nov 26, 2010
Good sites on offer from Govt
Many residential plots in Govt's latest land release programme are near MRT

By Esther Teo
THERE are plenty of plum sites among the new plots in the Government's latest land release programme to tickle the fancy of developers.

The 17 plots with a residential aspect on the confirmed list include 11 that are near MRT stations, always an inducement for builders and home buyers.

The decision to spice up the sites on offer this time might be due to the lack of response to an executive condominium (EC) site in Jurong West.

The land did not receive a bid when its tender closed in August, likely due to its remote location and increasingly selective developers, who have their pick amid a bumper land supply.

Most sites in the release announced on Thursday are also near previously launched plots in Punggol and Buangkok that received strong demand from developers, said DMG & Partners analyst Brandon Lee.

Mr Lee added that the site locations may be aimed at meeting market demand and also strategically based on 'regions that the Government is trying to spruce up'.

Mr Marc Boey, the Urban Redevelopment Authority's (URA) group director of land sales and administration, said on Thursday that 'the larger consideration behind putting so many sites in the North-east is to develop Punggol and Sengkang towns since these are new towns'.

'If you look at Hougang, we also have some sites to cater to HDB upgraders,' he added.

Confirmed list sites go on sale regardless of interest and are often an indication of the Government's strategic development plans. Land on the reserve list is put up for tender only if developers make an acceptable initial offer.

Of the 17 newly introduced sites with a residential component on either the reserve or confirmed lists, two are in Hillview Avenue in the Bukit Batok planning area.

That these were included probably signifies the Government's intent to further build up the area in tandem with the completion of infrastructure works such as Hillview MRT Station. Part of Downtown Line 2, it is slated for completion in 2015, experts said.

Mr Ong Kah Seng, Cushman & Wakefield's senior manager of Asia-Pacific research, said Hillview was once a semi-industrial area but was converted largely to residential use in the 1980s. This prompted the building of various condo projects.

One of the Hillview Avenue sites is a commercial and residential plot on the confirmed list which is estimated to be launched in February next year.

It was scheduled to be made available for sale on the reserve list in October 2008 but was eventually withdrawn amid a poor market.

The other site is for residential use and is on the reserve list.

DMG's Mr Lee said that the last government land site sold in the area was a Bukit Batok East plot in 2000. Far East Organization has since developed it into the 572-unit Hillview Regency.

The Government has also released smaller commercial sites such as the 0.29ha plot at the corner of Robinson Road and Cecil Street and a 1.42ha site in Paya Lebar. These could yield about 92,120 sq m of commercial space.

The URA said smaller sites which can be completed in about three years will help allay fears of a shortage of office space in 2014 once most ongoing developments have been completed.

Dr Chua Yang Liang, research head at Jones Lang LaSalle, said the release of the Robinson Road site was not surprising given the Government's intent to rejuvenate the Tanjong Pagar area into an integrated zone for 'live, work and play'.

Two hotel sites in Kallang Riverside are on the reserve list. A second parcel has been introduced for the first half of next year even though the first site did not draw any acceptable bids from developers when on the reserve list under the previous land sales programme.

Cushman's Mr Ong said that the inclusion of the two hotel sites could be due to the level of optimism in the industry thanks to increased visitor arrivals.

Mr Li Hiaw Ho, executive director of CB Richard Ellis Research, added that Kallang has been earmarked to be gradually transformed into a waterfront precinct with housing and the upcoming Sports Hub.

'A river-view hotel catering to athletes and other sports fans will help to further enhance the development of the Kallang area,' he added.

The last hotel site in the Kallang area was awarded in October 2008 to Citywide Land for $51 million, or $250 per sq ft per plot ratio.

esthert@sph.com.sg