Commercial site in Sengkang expected to be well-received

Business Times: Tue, Nov 22
(SINGAPORE) A commercial site boasting corner frontage along Sengkang West Avenue and Fernvale Road, has been launched for tender yesterday by the Housing & Development Board (HDB) and is slated to close on Jan 17, 2012. The 99-year leasehold p…

(SINGAPORE) A commercial site boasting corner frontage along Sengkang West Avenue and Fernvale Road, has been launched for tender yesterday by the Housing & Development Board (HDB) and is slated to close on Jan 17, 2012.

The 99-year leasehold plot in Sengkang has a site area of 94,618 square feet (sq ft) and a maximum plot ratio of 3.0, which translates to a maximum allowable gross floor area (GFA) of 283,854 sq ft.

Expected to be developed into a landmark commercial development catering to the lifestyle needs of those residing in the north-eastern parts of Singapore, the land plot is also easily accessible via the Fernvale LRT Station as well as expressways such as Tampines Expressway (TPE) and Central Expressway (CTE).

Sharing his insights on prospective demand, Donald Han, vice-chairman at Cushman & Wakefield, noted that the site should be ‘well-received’ and is of a good-size to develop a ‘sizeable’ retail mall.

Head of research at Savills, Alan Cheong, also expects the  tender to draw a fair number of bidders as sub-urban malls remain in short-supply. He expects likely buyers to comprise either unlisted real estate funds or developers with the aim of selling the completed project back to real estate investment trusts (Reits).

Bid-wise, both property veterans expect a relatively varied bid-profile for the site.

Predicting bids to be around $800 per square foot per plot ratio (psf ppr) for the Sengkang site, Mr Han said that the final numbers are ultimately dependent on the land parcel’s composition of use. Notably, a mixed retail-cum-residential project would likely garner higher prices than a pure retail one.

Competition from surrounding malls was also a common theme cited by both experts that could potentially dampen bidding sentiment for the tender site, as nearby mall, Compass Point, is better located because of its proximity to Sengkang MRT Station, which is along the major North-East Line.

Meanwhile, in the residential tenders scene, T G Development Pte Ltd and Master Contract Services Pte Ltd have jointly clinched the Miltonia Close condo site in Yishun at a price of $138.9 million which translates to about $364 psf ppr.

Property analysts note that the bid for the 99-year leasehold site, is lower than that achieved in recent residential developments in the vicinity, reflecting a more cautious stance amongst developers.

 
Source: Business Times © Singapore Press Holdings Ltd.

About Propertyguru Expert

Website contend is hand picked and high demand. Marketing Manager at Huttons Asia Pte Ltd. Indonesian Focusing in Private Residential Singapore. *Service Quality Assured. *Top 300 producer in 2011.