Yesterday closed tenders for the first half of the year for two confirmed residential sites under the GLS programme.
The first GLS tenders to close after the pandemic started were two 99-year land leasehold parcels – at Tanah Merah Kechil Link and Yishun Avenue 9.
After the proposals for both sites are reviewed, a judgment will be taken on the award of tenders.
Tanah Merah Kechil Link’s 8880 square meters of site, next to Tanah Merah MRT station, attired 15 deals, the largest of which was $248.99 m by MCC Land (Singapore). The land ratio (psf pp) is approximately 930 dollars per sq foot, analysts said.
This marks the largest number of tenders after Colliers International, Research Head of Singapore Tricia Song observed that the Holland Road commercial and residential site tenders in May 2018 had earned 15 offers for ten consortia.
It is also considerably higher than the four to nine deals for residential private sales in the past 18 months, she added.
Out of a total of seven HDB deals, Sing Holdings made a highest offer in the 21 514 square meter executing condominium (EC) site in Yishun Avenue 9 at 373.5 million dollars (or a land rate of $576 psf per pp).
The Chief Executive Officer of Showsuite Consulation Mr Karamjit Singh observed that the two sites are based on the mass markets, with the largest demand for houses.
‘The Top tender on the Tanah Merah site will demand that the developer sell $1,700 psf to $1,800 psf of new apartments that is bullish since new units trading between $1,500 psf and $1,600 psf in that region’ said Merah.
The main attractions of the site are its proximity to the station Tanah Merah MRT and its limited plot, which need less capital expenditure, said Senior Analysis and Consulting Director Ong Teck Hui at JLL.
During the slowdown, Singapore’s private house prices increased in Q3 by 0.8%. “The Tanah Merah Kechil Link residential construction would possibly start by the end of 2021 when demand buying will increase with a forecast economic recovery,” he said.
The Tanah Merah Kechil Link site on the first floor will theoretically generate around 265 units and 2000 square metres. It is intended for residential with industrial applications.
Commercial spaces are desirable because neighboring facilities are small, PropNex Analysis and Content Managing Director Wong Siew Ying said.
Due to the pandemic, Yishun EC was granted an extended 6-month public tender term. Contracting periods are normally six to 8 weeks for rehabilitation services under the GLS programme.