URA launches two adjacent Canberra Drive residential sites for tender

URA launches two adjacent Canberra Drive residential sites for tender

SINGAPORE - The Urban Redevelopment Authority (URA) has launched two residential sites (Parcels A and B) at Canberra Drive for sale by public tender under the confirmed list of the government land sales (GLS) programme for the second half  of 2019.

The adjacent land parcels, both with 99-year leases, can potentially yield about a total of 675 residential units, the URA said on Thursday (Nov 28).

Parcel A spans an area of 13,315.3 square metres (sq m) with a maximum gross floor area (GFA) of 18,642 sq m. It can yield about 220 housing units, with a maximum building height of 35 to 40 metres or five storeys, whichever is lower.

The larger Parcel B has an area of 27,566 sq m and a GFA of 38,593 sq m. It can yield about 455 units, with a maximum building height of 35 to 50 metres or five storeys, whichever is lower. 

The sites are connected to Sembawang Road and Seletar Expressway, and are within walking distance from the recently opened Canberra MRT station on the North South Line. Nearby amenities include Sembawang Shopping Centre and Sun Plaza, while Sembawang Primary School is also in the vicinity.

The two sites were previously put on the GLS reserve list for the first half of this year as a single 4.09-hectare plot, which has now been split into two parcels for sale on the confirmed list.

Splitting the large plot into two smaller sites would make them more palatable and attractive to a wider range of developers, noted Tricia Song, Colliers International head of research for Singapore.

“However, it would be interesting to see how the two tenders pan out seeing that both sites are launched for sale at the same time,” she said. “Typically, developers would prefer to have more control and less competition – would this then see them bid for both Parcels A and B so that they can better defend prices when the units are put on the market in the future?”

Units in nearby comparable private condominium projects such as Eight Courtyards (launched in 2014), The Nautical (2015) and Canberra Residences (2013) sold for $900-$1,000 psf in the year to date, said Ms Song. 

The most recent land tender recently was an executive condo site at Canberra Link, awarded in October for $233.89 million or $566.1 psf per plot ratio to MCC Land, who beat seven other bidders.

“With the Canberra MRT operational since Nov 2, we expect Parcel A and B to fetch top bids of $135 million and $280 million respectively, which works out to a land rate of $670 psf ppr. Developers could look to sell at an average price of $1,250 psf, she added.

Nicholas Mak, head of research and consultancy at ERA Realty, expects both sites to attract a moderate level of interest from developers, given Canberra Drive's distance from the city centre and the limited retail and food and beverage amenities in the vicinity currently.

He sees Parcel A attracting a top bid of $126 million to 133.4 million, while Parcel B could fetch as much as $249 million to $266 million.

The tender for both sites will close at 12pm on March 3, 2020. The tender closing will be batched with an executive condominium site at Fernvale Lane, which will be launched for sale next month.

Source from The Straits Times 28 Nov 2019

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