URA to launch tender for reserve list site at Hougang Avenue 2 in two weeks

The Urban Redevelopment Authority (URA) said it has accepted an application to put up a residential site at Hougang Avenue 2 for public tender.

It said a developer has committed to bid at least S$109.9 million for the land parcel.

The site is one of those on the Reserve List of the first half of this year’s Government Land Sales Programme.

It’s located within an established private residential estate and adjacent to Hougang HDB Town.

The 3.02 hectare land parcel with a maximum gross floor area of 42,285 square metres will be used to develop low density condominium, flats or landed housing development.

The URA will launch the public tender for the site in about two weeks.

The tender period for the land parcel will be in about a month.

The launch date will be announced later.

The land parcel was made available for sale through the Reserve List System on February 25.

Under the system, the government will put up a Reserve List Site for public tender if it receives an application from a developer who commits to bid for the site at or above the minimum price which is acceptable to the government.

The URA said 13 sites remain on the Reserve List of the first half 2010 Government Land Sales Programme that can potentially be triggered for sale.

These include two EC sites and two mixed-use sites where 5,885 private residential units can potentially be built. In addition, there are another eight residential sites in the Confirmed List of the first half 2010 GLS Programme that can yield another 2,925 units.

The GLS Programme for the first half of 2010 has therefore a total potential supply of 10,550 units, from both the Confirmed and Reserve Lists.

CBRE research executive director Li Hiaw Ho noted that recent new apartment and landed projects launched in the vicinity were all freehold projects such as Residences Botanique and Jansen 8.

“Assuming that a low-rise condominium of around 400 units will be built, the subject site is likely to fetch a land price of S$140 million to S$160 million. This translates to plot ratio of $310 to $350 per square foot,” Mr Li said.

Alternatively, based on the same price, around 200 units of cluster houses can be considered for strata landed housing development, he added.

The site is about 10 minutes’ drive from both Hougang and Kovan MRT stations.

It is accessible via a network of roads such as Central Expressway and Kallang-Paya Lebar Expressway.

According to Real Estate Lecturer at Ngee Ann Polytechnic, Nicholas Mak, he said: ‚ÄúThis tender could attract six to 11 bids.”

He added: “The top two to three bids could range from S$180 million to S$200 million. Mr Mak said that the most likely development that the top bidder may construct could be a five-storey condo development because he could realize the highest development potential from a non-landed project. The site Mr Mak added could potentially yield 395 to 420 condo units.”

Source : Channel NewsAsia – 7 Apr 2010

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