Commercial-residential site on sale at Ten Mile Junction

The first government land sales tender has been launched for this year.

It is a commercial and residential site at the junction of Woodlands Road and Choa Chua Kang Road, and analysts expect the bidding to be strong.

If a developer succeeds in buying the land, the Ten Mile Junction shopping mall, which currently sits on the site, will be transformed into a commercial and residential development, and integrated with the Ten Mile Junction LRT station.

However, analysts say that will not be its only draw.

“The key driving factor for this site is going to be the MRT station, rather than the LRT station,” explained Tay Huey Ying, director (Research & Advisory) at Colliers International.

“So, I think the close proximity of this site to the upcoming Bukit Panjang MRT station will really raise the attractiveness of this site, compared to when it was tendered out in 2008.”

The 2008 exercise failed when the site was not awarded to the top bid of S$61 million at the time.

The 99-year leasehold site has an area of about 1.56 hectares and a maximum permissible gross floor area of more than 23,000 square feet.

Consultant CB Richard Ellis expects the bids to range between S$135 million and S$150 million.

Units at the residential project could sell for S$650 to S$700 per square foot. Analysts said the take up will be healthy because the site is not large.

Chris Koh, director of Dennis Wee Group, said: “One thing good about non-large sites is that you get more people, even the smaller developers, and the middle-range size developers willing to bid for such sites.”

This will be the first residential site to be sold through the Confirmed List of the Government Land Sales Programme for the first half of this year.

Units at nearby Mi Casa in Choa Chu Kang, a new 99-year leasehold project, have been transacting at S$650 to S$700 per square foot (psf), while the older Maysprings has been selling at about S$600 psf in the resale market.

Analysts said the new development is likely to attract upgraders of Housing and Development Board flats and people who work in the Bukit Panjang, Choa Chu Kang and Woodlands areas.

The tender by the Urban Redevelopment Authority will close on February 23. URA said the successful bidder will be chosen based on the tendered land price only.

Source : Channel NewsAsia – 5 Jan 2010

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