URA releases Geylang East site for tender

A private residential site next to the Aljunied MRT Station from the government’s reserve list has been triggered for sale.

The Urban Redevelopment Authority (URA) said it had accepted an application from a developer, which has committed to bid at least S$95 million for the site.

The land parcel was made available for sale through the Reserve List system on May 15.

As the minimum price committed by the developer is acceptable to the government, URA said it will release the 99-year leasehold land parcel for sale by public tender.

Located along Geylang East Avenue 1, the site has a land area of about 0.62 hectares, with a maximum permissible gross floor area of 17,467 square metres.

OrangeTee’s head of research and consultancy Christine Li said the site was triggered for sale due to its relatively small size as many smaller players are running low on land bank.

It believed the reputation of the plot’s surrounding areas could be a major challenge in attracting optimistic bids from developers. The area is also estimated to see a wave of project completions in the coming years, especially shoebox units.

As such, OrangeTee believed that the top bids are likely to come in at around S$600 to S$650 per square foot (psf), and the project could be selling from S$1,250 to S$1,300 psf.

URA will launch the tender for a 99-year leasehold private housing site next to Aljunied MRT Station in about two weeks.

Source : Channel NewsAsia – 2 Dec 2013

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