The Urban Redevelopment Authority (URA) has put three residential plots on the market at Jalan Tembusu and Lentor Hills Road (Parcels A and B), which are likely to be well-received by developers.
The 99-year leasehold plots were issued as part of the Government Land Sales (GLS) program for the second half of the year on Thursday (September 30).
The plots in Lentor Hills Road (Parcel A) and Jalan Tembusu are verified, while the site in Lentor Hills Road (Parcel B) is on the reserve list.
Confirmed list sites are put out to tender on time, regardless of demand, while reserve list sites are only put out to tender if the government gets an acceptable minimum price bid.
Lee Sze Teck, senior director of research at Huttons Asia, said the Jalan Tembusu property is in “a desirable location for many purchasers,” and that a successful tender price of between $1,400 and $1,500 per square foot per plot ratio is expected (psf ppr).
Mr Lee said that since the total amount would be significant, the number of bids will be limited to ten.
Meanwhile, Nicholas Mak, ERA Realty’s director of research and consulting, said that Jalan Tembusu’s highest offer may range from $1,250 to $1,350 psf ppr and draw five to ten bids.
Mr Lee anticipates the winning bidding price for the Lentor Hills site to be between $1,150 and $1,250 psf ppr, with no more than 10 bidders, adding that the site – the second to be launched in the region after Lentor Central – would benefit from local facilities. He also said that the Lentor MRT station is close across the street.
Mr Mak expects the site’s top bid to be in the range of $1,170 to $1,250 psf ppr and to attract five to ten bidders, adding that while the Lentor Central site’s tender closing set a new price record for a GLS site in the outside central region (OCR), the highest bid for Parcel A could exceed that high because “some property developers are hungry for land.”