Another residential plot triggered for sale

Source : Straits Times – 24 Sep 2009

A PLOT in Upper Thomson Road has been triggered for sale after an unnamed developer committed to bid at least $82 million for the site.

The bid – it works out to $174 per sq ft per plot ratio – comes less than a fortnight after government measures to rein in the property market and indicates that developers are still keen to chase residential sites.

The 2.08 ha plot, which is near Lower Peirce Reservoir Park and Bishan Park, has been available on the reserve list since April last year.

It could go for tender only if a developer indicated interest by committing to a minimum bid acceptable to the Government.

A tender for the site will now be launched in two weeks, said the Urban Redevelopment Authority (URA) yesterday.

Experts say the plot, which can generate a maximum gross floor area of 43,781 sq m, has plenty of appeal, even though it is not near an MRT station.

CBRE Research executive director Li Hiaw Ho said it is likely to sell at between $375 psf and $425 psf per plot ratio.

The developer could probably launch the new project at $800 psf to $850 psf, he added.

Mr Li said units in Clover By The Park, a fairly new 99-year leasehold condo in Bishan, were recently relaunched at $750 psf on average.

Two other new freehold launches in the vicinity – Tresalveo at Marymount Terrace, and Meadows @ Peirce at Upper Thomson Road – were launched at around $975 psf and $900 psf respectively, he added.

Mr Li expects the Upper Thomson Road site – which has a full view of the Island Golf Course and Lower Peirce Reservoir – to be hotly contested, considering the strong showing at recent tender exercises.

But property consultant Nicholas Mak said the top bids could range from $310 psf to $350 psf. This takes into account the recent deals at nearby condos, including Bishan Park Condo, which were done at between $550 psf and $655 psf.

Bids will be moderated because the Government will be making more land available in the next six months, he said.

Developers have been keen to buy land amid the recovery in the private homes market, with recent government tenders attracting higher-than-expected top bids and plenty of bidders.