Residential sites to build 1,800 homes up for tender

The government will be releasing four residential sites for sale this month. The four sites can collectively yield about 1,800 residential units.

One executive condominium site at Anchorvale Crescent and two residential sites at Fernvale Close and Faber Walk will be launched for sale on Monday under the Confirmed List.

The plot in the landed enclave of Faber Walk can potentially yield 210 units, and be built to a maximum of five floors. The other at Fernvale Close is estimated to provide 495 units, while the executive condominium site at Anchorvale Crescent is estimated to provide 690 units.

The fourth site, an executive condominium site at Punggol Central, will be launched on 29 April under the Confirmed List.

The sites fall under the Housing and Development Board (HDB) and Urban Redevelopment Authority’s (URA) Government Land Sales Programme for the first half of this year.

In a move to moderate tender bids and future property prices, the government will also for the first time close the tender for multiple sites at the same time.

Director of property firm Chris International, Chris Koh said this move is likely to make developers more cautious during bidding.

“A developer who has that amount of money in his kitty has to decide which site he wants. If you spread them out, he can always pick one site first and then two months later, bid for another site.

“So by putting them all together, closing the tender on the same day, the developer has to choose. Unless he’s got a very deep pocket, then he’s able to bid three sites at the same time. But if not he will end up only bidding for one site.”

The tender for the Punggol Central site will close on 30 July, the same day as two other executive condominium sites at Punggol Drive and Yuan Ching Road.

The Punggol Drive and Yuan Ching sites, however, will be launched for sale later in June.

The HDB and URA said the move to close the tenders on the same day was initiated in response to feedback from the public and real estate industry.

They added the sites were chosen on the basis that all three are meant for executive condominium developments and slated for launch during the second quarter of this year.

However some analysts said lower bidding prices may not always translate to lower property prices.

Nicholas Mak, executive director of research and consultancy at SLP International Property Consultants said: “Just because a developer buys the land at a cheap price, doesn’t guarantee that they will launch the condominium at a low price down the road. If the government’s objective is really to lower housing prices, they would have to probably supplement this new initiative with some other measures to ensure new condo prices are softer”

Source : Channel NewsAsia – 11 Apr 2013

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