THE Urban Redevelopment Authority (URA) and Housing and Development Board (HDB) on Tuesday (Mar 14) released two residential land plots for sale. Both sites fall under the confirmed list in the first half 2023 government land sales programme.
One plot is located at Jalan Tembusu near the Tanjong Katong area, while the other is an executive condominium (EC) site at Tampines Street 62. Together, they may yield around 1,540 residential units, URA and HDB said in a press statement.
Developers will likely exercise more caution when bidding for the Jalan Tembusu plot, noted property analysts from PropNex and JLL.
“It could draw fewer than five bids, as developers are expected to remain cautious due to increased risks from high acquisition and construction costs amid soaring interest rates,” said Chia Siew Chuin, head of residential research and consultancy at JLL Singapore.
That being said, developers may form a consortium to share bidding costs and reduce the project’s risks, said Steven Tan, OrangeTee & Tie’s chief executive.
PropNex’s head of research and content Wong Siew Ying said developers could also be more measured with their bids in view of incoming supply of new private homes in the area.
The Jalan Tembusu plot is surrounded by three upcoming launches in the vicinity, namely Tembusu Grand, The Continuum, and Grand Dunman. These projects collectively offer more than 2,400 residential units, estimated Wong.
The Jalan Tembusu plot, launched by URA, has a site area of 20,572.1 sq m and a maximum GFA of 72,003 sq m. Nearby amenities include speciality grocery stores along Tanjong Katong Road and Parkway Parade.
The land parcel is also close to educational institutions such as Chung Cheng High School (Main), Tanjong Katong Girls’ School, Tanjong Katong Primary School and Tanjong Katong Secondary School.
Property analysts are expecting between two and five bidders for the land plot, with a successful tender price ranging between S$1,250 and S$1,400 per square foot (sq ft) per plot ratio (psf ppr) or between S$968.8 million and S$1 billion.
Bidders will likely reference the Tembusu Grand launch to gauge potential demand for homes in the area, said Huttons senior director of research Lee Sze Teck.
“The Katong area had not seen a project launch with a land size of more than 200,000 sq ft since Haig Court in 2004,” he added.
HDB, meanwhile, has launched the Tampines Street 62 (Parcel B) EC site. The plot has a land area of 28,000.2 square metres (sq m) and a maximum gross floor area (GFA) of 70,001 sq m.
Property analysts believe the plot could attract up to 10 bidders, with the top bid possibly coming in between S$600 and S$700 psf ppr, or between S$452 million and S$512.4 million.
They expect healthy interest for the land plot as previous EC project launches sold well despite the high-interest-rate environment and property cooling measures.
Furthermore, as prices of new condo units continue to climb and the price gap between new ECs and new condos widens, eligible buyers will choose the more affordable EC option, said Tan.
Developers also see ECs as a safer option given steady demand from first-time buyers and HDB upgraders, said Wong.
Tenet, an EC plot adjacent to the Tampines Street 62 (Parcel B) site, which launched in December 2022, only has 10 units left for sale, indicating strong demand for ECs in the area, said Lee.
The tender for both parcels will close at 12 pm on Jul 18.