Govt releases three land sites in Yishun & Margaret Drive for sale

The government has released three land parcels for private housing which are expected to yield some 1,300 units.

In a joint news release, the Housing and Development Board and the Urban Redevelopment Authority said those three sites are released for sale under the first half of this year’s Government Land Sales programme.

Two adjacent sites at Yishun Street 51 have been launched for sale under the Confirmed List.

Both parcels carry a 99-year lease. Parcel A has a site area of 50,302 square metres, while Parcel B has a site area of 51,139 square metres.

The two executive condominium (EC) sites can yield about 1,010 residential units.

This is the second time that two adjacent EC sites have been launched for sale on the same day with the same tender closing date.

However, some analysts remain hesitant on whether this will actually help reign in land bid prices.

Property analysts expect developers, especially larger ones, to try and win both sites, which would give them greater control over pricing.

The previous batch tenders featuring adjacent EC sites in Choa Chu Kang were both won by a single developer, MCL Brighton, in February.

But developers are also expected to be mindful of slowing EC sales as buyers have faced tighter loan restrictions since December.

“Developers should be wary of a potential oversupply in EC in the north region,” said Christine Li, head of research and consultancy at OrangeTee.

Ms Li noted that there is an EC site at Sembawang Avenue on the Confirmed List and another at Sembawang Road on the Reserve List.

Those two sites are expected to yield a total of 1,225 units.

Another EC project at Canberra Drive was also recently awarded in January, and its launch can be expected possibly by May 2015.

Skypark Residences, which was launched last year in November, has also only had about 58 per cent of its units sold.

The closing tender date for the two executive condominium sites at Yishun Street 51 is May 22.

Another plot at Margaret Drive has also been put on the Reserve List.

Located near Queenstown MRT, the 99-year-lease plot may be smaller at 4,800 square metres, but analysts say the development could possibly be about 40- to 50-storeys high.

The plot can yield an estimated 275 private homes.

While it is located in a mature estate, some property analysts like Eugene Lim, Key Executive Officer of ERA Realty Network, do not expect the tender to be triggered so soon.

This is because developers are expected to be more conservative due to a slowing property market and property cooling measures.

Source : Channel NewsAsia – 27 Mar 2014

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