The Urban Redevelopment Authority of Singapore has released 2 residential sites for sale on Tuesday under the 2H2016 Government Land Sales (GLS) programme, which will set to yield approximately 525 private home.
The bigger attraction between both sites will be the one at Perumal Road. According to the Master Plan 2014, it can possibly be developed into a mixed-used property with 200 units and commercial spaces on the 1st floor.
The estimated 173,955 square feet site is expected to draw huge interest from property developers due to its proximity to Farrer Park MRT Station and nearby amenities including City Square Mall and also Mustafa Centre.
According to property analysts, given its strategic location in the city fringe, the Perumal Road site will likely receive bids between $280 million (SGD) to $295 million. This would also translate into a range between $800 – $850 psf ppr.
However, it was added that the future new launch on the Perumal Road site will face intense competition from the latest project in the area – Sturdee Residences (launched during April 2016), which has sold 194 out of the total 305 units (as at November 2016) at an average psf of $1,615.
Based on the forecasted bid, the units at the new Perumal Road development could be averagely priced between $1,600 to 1,700 psf.
Despite being slightly closer to Farrer Park MRT Station, developers and even future prospects may be taken aback by it’s immediate proximity to the Hindu temple situated next to the Perumal Site, which could possibly get noisy from religious activities during festive periods.
The other site for sale will be located at Toh Tuck Road. Spanning across a land area of approximately 201,512 square feet, the Toh Tuck Road site can yield an estimated of 325 units.
Being near to recreational locations such as the Bukit Timah Nature Reserve, as well as education institutes namely Ngee Ann Polytechnic and Pei Hwa Primary School, the site at Toh Tuck Road will be expecting bids between $210 million to $225 million (or $750 to 800 psf ppr on average).
Market watchers have noted that both of these sites should see healthy demand from property developers due to the scarcity of land supply and lack of new launches in these areas.