ST : 2 residential site sales will test cooling measures

18 JAN 2011,

2 residential site sales will test cooling measures

THE response of developers to the latest property cooling measures is about to be tested, with two residential sites up for sale.

The Bedok Reservoir and Bartley Road plots can accommodate 1,260 flats in total and have attractive selling points.

But experts say last week's cooling measures will probably mean a 'moderate response' from developers. A tender for the 4.56ha plot in Bedok Reservoir Road was launched by the Urban Redevelopment Authority (URA) yesterday.

The site has a maximum gross floor area of 63,873 sq m and can house about 640 homes. The project can be up to five storeys and used for serviced apartments. It will be the first residential site sold under the government land sales programme's confirmed list this year. Industry experts think it could fetch $220 million to $300 million.

The URA also said a reserve list site at Bartley Road-Lorong How Sun junction will go up for sale in about three weeks.

An unnamed party triggered the tender process by committing to bid at least $191.8 million - $288 per sq ft (psf) per plot ratio (ppr) - for the 2.21ha plot.

The Straits Times understands that the bid was finalised after the Jan 13 measures were announced. The 99-year leasehold site next to Bartley MRT Circle Line station can yield about 620 units and be used for condos or flats.

Mr Ong Teck Hui, Credo Real Estate's head of research and consultancy, said developers will be cautious after the measures, resulting in lower bids.

Mr Png Poh Soon, Knight Frank's head of research and consultancy, expects four to seven bids for the Bedok site. The top bid is likely to be between $450 and $500 psf ppr or up to about $340 million, translating to a selling price for the flat of $1,000 to $1,050 psf.

'Next door, condo units at Waterfront Gold were transacted at an average of $990 to $1,150 psf last year while average selling prices at Waterfront Waves were $650 to $800 psf,' Mr Png added.

Mr Tan Kok Keong, OrangeTee's head of research and consultancy, said the Bartley site should get more interest as it is close to the MRT and surrounded by landed housing. He expects up to eight bids of up to $450 to $500 psf ppr, making an overall price of about $330 million.

Mr Tan tips four to five bids for the Bedok site, reaching $350 psf ppr, saying: 'There's still a remaining supply of homes in the Bedok Reservoir area... so it's not as attractive.'

ESTHER TEO