The Urban Redevelopment Authority (URA) will be placing a Reserve List site at Alexandra View for sale by public tender.
This comes after URA received an application from an unnamed developer to release the residential site for sale.
URA said the developer has committed to bid at a price of not less than S$222,898,000 for the 99-year leasehold site which could potentially yield 375 residential units.
Under the Reserve List system, a site will only be put up for tender if the developer’s minimum bid price is acceptable to the government.
Analysts say the minimum bid price translates to about S$650 per square foot per plot ratio (psf ppr).
The site spans 0.65 hectares and it will have a maximum permissible Gross Floor Area (GFA) of 31,858 square metres.
Property consultants expect the land parcel to see keen interest from developers as it is located in an established residential area within the central region and near the Redhill MRT station.
Nicholas Mak, executive director for Research & Consultancy Department at SLP International Property Consultants, said: “Following the high land prices set in the sale of the residential sites at Alexandra Road in December 2011 and Prince Charles Crescent this September, the top few bids for this site are estimated to vary between S$320 million (S$933 psf ppr) and S$336 million (S$980 psf ppr).”
Eugene Lim, key executive officer at ERA Realty Network, said: “We are expecting 8-10 bidders and the tender price may well exceed S$1,000 psf ppr. Nearby, Ascentia Sky units are already transacting above S$1,600 psf on the subsale market. The successful bidder may be looking to sell at around S$1,800 range.”
URA will launch the public tender for the site in about two weeks.
Source : Channel NewsAsia – 23 Oct 2012