Thursday, July 28, 2011

Moderate demand expected for Upper Serangoon site

(SINGAPORE) The government is releasing a private residential site at Upper Serangoon for sale via tender today and market watchers expect to see moderate demand for it.
The plot, at Upper Serangoon Crescent/Upper Serangoon Road, has a 99-year lease which includes a 60-month construction period. At 2.46 hectares, it has a maximum allowable gross floor area of around 927,500 sq ft and can yield an estimated 860 dwelling units.

The site is located some distance away from Buangkok MRT Station, though it is near Punggol Park and Serangoon Reservoir. Just across the road is the upcoming Austville Residences.

'As this is a mediocre site and market uncertainties have increased, bidders are expected to be more cautious in the tender,' said Credo Real Estate executive director Ong Teck Hui.

He believes there could be three to five bidders, and the top bid could come in at $300-350 per square foot per plot ratio (psf ppr).

Cushman & Wakefield senior manager of Asia Pacific research Ong Kah Seng expects to see around five bids for the site, with the winning bid reaching $380-450 psf ppr.

The site might draw 'average interest' from developers as home buying interest could be affected by global uncertainties, a possible slowdown in Singapore's economic growth, and concerns that more property cooling measures could come, he said.

Under the H2 GLS programme, the government placed 17 sites on the confirmed list and 13 sites on the reserve list for private residential development which can potentially generate around 14,200 units altogether. Next month, it will be releasing four residential sites.

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