A home site at the junction of New Upper Changi Road and Bedok Southern Ave three has been organized for sale through public sensitive by the Metropolitan Redevelopment Expert (URA), with analysts stating the public sensitive will likely attract developers because of its attractive location.
The 262, 575sqf parcel has a maximum permissible gross floor area of 551, 414sqf. At a gross storyline ratio of 2. 1, the 99-year leasehold site can yield approximately 570 homes.
The causing of the property parcel will not come as a surprise, given the location’s characteristics, said an analyst. The website ticks many boxes: Proximity to (Tanah Merah) MRT station and educational institutions, within walking range to Bedok Sports Corridor, and an excellent rental catchment, which includes employees in the Changi Business Recreation area. Rental produce in the region is about 3-3. 5 per cent, which is quite attractive for residential developments.
URA said it had received an application from a programmer for the website on January 7, having a commitment of S$320 million in the sensitive. The site is released through the Reserve List of the second half of 2015 Federal government Land Product sales (GLS) Program and the sensitive will close on Feb 23.
The bid that brought on the release of the site is somewhat conservative, as the programmer may have presumed a 15 per cent reduction in sales price from Dec 2015 to October 2016. Assuming that prices will dip by about five per cent, we anticipate the winning bet to be around S$380 million (S$690 a sqf) to S$400 million (S$725 a sqf). Provided the location, we expect the amount of bids to generally be around 20, he increased.
Another agent expects even more reserve online websites to be post for sale pertaining to the year in front.
We could discover more online websites to be prompted for sale. In spite of the slow current market, developers need to have the acreage parcel and keep the business heading, or these are going to have numerous spare total capacity, development dividing will be bored, he reported.