SINGAPORE – Two 99-year leasehold government land sites in the Bukit Timah and Hillview areas, where new private home supply is limited amid strong demand from owner occupiers and Housing Board upgraders, have been released for sale via public tender.
Developers’ interest is expected to be healthy for these sites in the city fringe and suburbs in view of their palatable size and robust take-up of launches in these submarkets – Piccadilly Grand, [email protected] and AMO Residence.
The two parcels, which can yield a total of 495 homes, are on the confirmed list of the Government Land Sales (GLS) Programme for the second half of this year, the Urban Redevelopment Authority announced on Wednesday.
Located next to Beauty World MRT station, the Bukit Timah Link site spans 4,611.1 sq m and can yield 160 units, while the Hillview Rise site spans 10,395.2 sq m and can yield 335 units.
JLL senior director for research and consultancy Ong Teck Hui said the two land parcels should draw strong demand from developers that need to replenish their land banks due to low unsold new home stock.
“There are also limited residential sites available under the confirmed list of the GLS programme, and it is a challenge to secure collective sale sites due to a mismatch in price expectations between sellers and buyers,” he added.
These two small plots could attract more interest due to the lower development risks and costs, Mr Steven Tan, chief executive of OrangeTee & Tie, said.
For bigger upcoming sites at Tampines Avenue 11 (estimated 1,190 units) and Marina Garden Lane (estimated 795 units), developers may need to enter into joint venture partnerships to pool resources and share costs, he added.
Strong sales at nearby The Linq @ Beauty World, which saw 96 per cent of its units transacted at an average price of about $2,200 per sq ft during its launch in November 2020, could raise developers’ confidence over the Bukit Timah Link site, Ms Wong Siew Ying, head of research and content at PropNex Realty, said.
Even though the Bukit Timah Link site is expected to attract developers keen to ride on the transformation of the Beauty World area, ERA Realty’s head of research and consultancy Nicholas Mak believes that an upcoming mixed-use development at nearby Jalan Anak Bukit, which could build as many as 700 homes, may pose as strong competition to future developments on the site.
Most analysts expect the Bukit Timah Link site to attract top bids ranging between $1,200 and $1,300 psf per plot ratio (ppr) or a total quantum of below $200 million.
Meanwhile, the Hillview Rise site is also expected to see healthy bidding, as “the lack of suburban new home supply is unlikely to be resolved any time soon”, Mr Tan said.
Huttons Asia’s senior research director Lee Sze Teck said there is little competition in the Hillview area as the nearest project, Midwood, which was launched for sale in October 2019, is fully sold as at May this year.
Ms Wong estimated that the Hillview Rise site could attract top bids of between $313 million and $345 million, reflecting a land rate of $1,000 to $1,100 psf ppr.
Bukit Timah Link is located near malls such as Beauty World Centre, Beauty World Plaza, Bukit Timah Shopping Centre and good schools such as Pei Hwa Presbyterian Primary School, and Methodist Girls’ School.
The Hillview Rise site, within walking distance of Hillview MRT station, is near the Rail Mall, Dairy Farm Nature Park and Bukit Timah Nature Reserve.
The tender for both sites will close at noon on Nov 3.
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