While both 99-year leasehold sites appear fairly attractive, the current unsold residential stock in their vicinity could prove to be a deterence to developers. Still, consultants are expecting the commercial-residential site at Yishun Avenue 4 to draw a high number of bids.
"We expect developers' response to the site to be fairly enthusiastic as commercial/residential developments typically sell well," said ERA Realty key executive officer Eugene Lim.
"With an estimated 180 residential units that can be built on the site, the project is not overly large and developers should be relatively confident of the response from buyers."
The Yishun plot at Yishun Avenue 4, which has an estimated gross floor area of 27,327 sq m, is the first selected government land sale (GLS) site to be adopting prefabricated prefinished volumetric construction (PPVC), on top of having to meet a certain level of prefabrication under new government rules for the built sector.
Mr Lim is expecting at least six to eight bidders for this plot with the winning bid at S$650-S$750 per square foot per plot ratio (psf ppr), going by average transacted prices of S$1,152 psf at Nine Residences and S$1,032 psf at The Estuary.
SLP International executive director Nicholas Mak was more bullish, expecting 11 to 18 parties to take part in the bidding and the top bid to range from S$750 psf ppr to S$816 psf ppr.
He noted that the Yishun site's key attractions include its wide frontage, regular plot shape, and its proximity to good schools and major expressways.
"Potential threat to this site would be commercial and residential developments that have unsold units to date," Mr Mak said, citing the 40 unsold units at Nine Residences and 20 unsold units at Skies Miltonia.
There will also be another 660 units from EL Development's yet-to-be launched condominium project, Symphony Suites, at Yishun Avenue 9.
Similarly, the Anchorvale Crescent site - which is expected to yield 525 EC units - will face competition from ample upcoming supply of EC units in the Sengkang and Punggol planning area, Mr Mak said.
There are four EC projects under development in the planning area, namely Bellewaters, The Amore, The Terrace and one other GLS site sold last November, Mr Mak said. These developments could yield an estimated 2,320 units. The number will add up to 2,470 units if unsold EC units in already launched projects are included.
Drawing reference from the previous EC site at Anchorvale Crescent acquired by SingHaiyi Group in February at S$367 psf ppr and the indicative selling prices of S$740-S$864 psf for some upcoming EC launches, Mr Mak said he expects the top bid for the new EC site at Anchorvale Crescent to fall within the S$320-S$360 psf ppr region with a total of four to eight bidders.
Source from Business Times