GLS sites at Kampong Java Road and Tampines Avenue 10 launched for sale
Mr Ong Teck Hui, Senior Director, Research & Consultancy
SINGAPORE - Two Government Land Sales (GLS) residential sites were launched for sale today with tender closing on 15 January 2019.
Kampong Java Road
The Kampong Java Road site is in prime district 9, near the popular Newton Road residential belt and is within walking distance to Newton MRT station. Orchard Road and the CBD are easily accessible from the subject site so its location will be the main attraction to buyers. Notwithstanding its attractive location, bidders for the site will take into account the slower demand for private homes since the July cooling measures as well as the significant supply in the sales pipeline. There could be 5 to 7 bidders for the site with a top bid of between $1,300 and $1,500 psf/pr.
From the tender closing of the Jalan Jurong Kechil and Dairy Farm Road sites in September (first GLS tender closing after the July measures), the top bids were more cautious, with only 3 and 5 bidders respectively. Prior to the July measures, tender closing for URA residential sites since January 2018 attracted 6 to 10 bidders per site (excluding the single bid for the Silat Avenue site).
Tampines Avenue 10 (Executive Condominium)
Tampines Avenue 10 has become a popular condominium enclave in Tampines, with the development of a number of condominiums there including Q Bay Residences, The Santorini, The Alps Residences and The Tapestry. Existing launched EC projects have been practically sold out and the only future EC sales supply are from the parcels at Sumang Walk, Canberra Link and Anchorvale Crescent. Tampines has also not seen a new EC project since the launch of Citylife@Tampines in February 2013, so there could be keen demand from upgraders in Tampines as well as nearby HDB towns.
Due to the shortage in supply of new ECs and keen demand from buyers, developers would have a more optimistic outlook on the EC market. We could see 6 to 10 developers contesting for the parcel with the top bid coming in between $500 and $600 psf/pr.
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