Wednesday, October 24, 2012

URA to launch tender for Alexandra residential site


Oct 24, 2012
By Esther Teo Property Reporter

Another choice residential site is on the market, thanks to the keen interest of developers, still anxious to secure well-located sites close to MRT stations.

The 99-year leasehold reserve list site at Alexandra View, which went on the reserve list less than a month ago, will be put up for tender in two weeks.

It has been triggered for sale after a developer committed to bid at least $222.9 million - or $650 per sq ft (psf) per plot ratio (ppr) - for the 0.65 ha land plot, the Urban Redevelopment Authority said yesterday.

Confirmed list sites go on sale regardless of interest, while those on the reserve list are put up for tender only if a developer makes an acceptable initial offer.

Experts say that the tender will likely attract major developers with the top bid possibly eclipsing $1,000 psf ppr. The site is attractive as it is in an established residential area within the central region and is close to the Redhill MRT station, they add.

Land parcels in the area have been in demand with two other sites sold in the past year - one at Alexandra Road last December and another at Prince Charles Crescent last month. Both received strong bids.

Mr Nicholas Mak, head of research at property consultancy SLP International, said the top few bids are expected to vary between $320 million and $336 million - or $933 to $980 psf ppr.

"The tender will likely attract some major developers who had developed or are currently developing residential projects in this location. An estimated six to 10 bidders are expected to participate in this tender," he added.

ERA Realty key executive officer Eugene Lim noted that the Alexandra site is closer to the MRT station than the Prince Charles site. As it also has a higher plot ratio, the developer could build a high-rise development with units enjoying unblocked views of the city and its surroundings, he said.

The Ascentia Sky nearby, a 45-storey development, is already selling units for above $1,600 psf in the subsale market.

Mr Lim expects the tender price for the new site to possibly exceed $1,000 psf ppr.


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