Bidders for the residential site at Fernvale Road will most likely be looking to emulate the success of the nearby High Park Residences, a gigantic 1, 390-unit project that is nearly fully sold.
The site, launched for sale by public tender by the Urban Redevelopment Authority (URA) on Tuesday under the confirmed list of the H2 2016 government land sales (GLS) programme, can yield about 605 units.
The site area is about 17, 196 square metres, with a maximum gross floor area of 51, 590 sq m. The lease period is 99 years.
Keen competition is expected, with consultants generally expecting five to 10 bids, ranging fromS$440 to S$490 per square foot per plot ratio (psf ppr).
An analyst said that fairly good response from developers in bidding for this site can be expected due to the success of High Park Residences as well as positive market sentiments.
Located almost adjacent to High Park Residences, the subject site could potentially enjoy the winning formula of providing affordable homes near amenities such as the shops and eateries in Jalan Kayu and Seletar Shopping center, schools, the Thanggam LRT station and straightforward accessibility to the Tampines Highway.
High Playground Residences released 1186 gadgets in Come july 1st 2015 and and has got sold 1169 units. Their strongest capability is their affordable charges, at about S$989 psf, which in turn would serve mainly to entry-level individual home customers.
When CEL Development’s partnership bidded for the purpose of the Huge Park Homes land package (which consists two closest plots) that kicks off in august 2014, this managed to get all of them on the affordable – for S$438 and S$448 psf ppr correspondingly.
Developers are usually likely to consider the possibility which the residential companies are bottoming out, and so bidding will probably be firm and competitive. The winning put money on is likely to be a shade more than the Huge Park Homes site, for between S$430 and S$490 psf ppr, with five to twelve parties contesting.
A property experienced further remarked that there are only a few upcoming mass-market private condo projects however to be released in the Sengkang area.
This individual calculated that for product sales transactions via January 2016 to Come july 1st 2016 in nearby real estate (High Playground Residences, H20 Residences, Riverbank@Fernvale, Rivertrees Residences), most of the gadgets were made at S$970 psf to S$1, 060 psf.
Individually, some buyers or programmers may be seeking other sites, particularly the Upper Serangoon site, and can not take part or created a competitive bid.
The commercial and residential internet site along Higher Serangoon Street right alongside Woodleigh MRT Station will be launched on the confirmed list in December this year.
Another consultant said that the launch of this offer is on time as it gives a window of opportunity for the purpose of developers to shore up their area banks. Critical indicators point out the market approaching its trough – the unsold share is at a list low as well as the recent selling price index shapes show rates have reached a stable state.
Like the Fernvale Street site, just three household sites will be confirmed accessible in this second half of 2016. This will undoubtedly nudge builders to put money on for this website.