Two choice condo sites at Pine Grove released for sale

SINGAPORE – The Urban Redevelopment Authority (URA) released for sale on Tuesday (Nov 30) two 99-year leasehold private residential sites at Pine Grove that can yield potentially over 1,000 units in total.

Both sites were released under the reserve list of the second half 2021 government land sales (GLS) programme. Such sites will be put up for tender only when a developer has indicated a minimum price that is acceptable to the Government.

Spanning 22,534.7 square metres (sq m), parcel A has a maximum gross floor area of 47,323 sq m and can yield 520 units. Parcel B, which spans 25,039.2 sq m, has a maximum GFA of 52,582 sq m and can yield 565 units.

Analysts say the sites may draw demand from land-hungry developers, given their palatable size and location in a popular residential enclave. Key attractions include proximity to Henry Park Primary School, Holland Village, the one-north precinct and National University of Singapore (NUS).

Given the strong property market sentiment, developers’ growing appetite for land acquisition and dwindling supply of new homes in the suburbs, there is a good chance that developers may apply to trigger these two GLS sites off the reserve list, said Mr Ismail Gafoor, chief executive of PropNex Realty.

“The two parcels will offer more private housing supply to the Ulu Pandan estate. The most recent nearby new project – Ki Residences at Brookvale – was launched in December 2020 and has sold over 75 per cent of its units – indicating healthy underlying demand for new housing there,” he added.

Cushman & Wakefield’s head of research Wong Xian Yang noted that there are dwelling unit caps on both sites to manage traffic in the area.

“Given their relatively large size, the sites could be triggered one at a time, although Parcel A could attract more interest due to its slightly smaller land size and more regular shape.

“But if both are triggered for sale at the same time, some developers may bid for both sites to mitigate future competition,” he said.

Analysts expect between six and 10 bidders for each site, with bids ranging between $960 per square foot per plot ratio (psf ppr) and $1,300 psf ppr.

If triggered, the bids may set the benchmark for the reserve price of nearby en bloc-hopeful Pine Grove, whose last $1.86 billion collective sale attempt closed without buyers, said analysts.

Ms Tricia Song, head of research for South-east Asia at CBRE, noted that Parcel A can be built up to an average of 980 sq ft per unit, while Parcel B can be built up to an average of 1,002 sq ft per unit.

“These minimum unit sizes are slightly bigger than the implied 85 sq m or 915 sq ft as per URA guidelines for non-landed residential developments outside the central area in January 2019,” she said.

“However, given the large combined size of the offering and considering unit affordability, we expect the top bid to be more tempered, compared to the recent tenders of two parcels at Slim Barracks, which have a smaller total quantum of 400 units and achieved top bids of $1,210-$1,246 psf ppr.

“If either of the Pine Grove sites are launched for tender, developers could be looking at a selling price of $1,900-$2,000 psf, and a land rate of $1,000-$1,100 psf ppr,” Ms Song said.

Huttons Asia senior research director Lee Sze Teck said chances of the sites being triggered are not high.

“There are better sites on the confirmed list such as Jalan Tembusu and upcoming en bloc sites. There may be more sites under first half 2022 GLS programme which will be announced next month,” he added.

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