It was expected that the recent public tender that was launched by the Urban Redevelopment Authority in Siglap Road would produce some warm interest in bidding by developers.
The site sits in a residential area and is also located near CHIJ Katong Convent, Tao Nan School, Victoria Junior College and Victoria School. Also nearby are East Coast Park and a number of existing condos, such as Villa Marina, Fernwood Towers and Mandarin Gardens.
The 1.93 hectare land parcel has many favourable attributes, among which is its East Coast residential territory and close proximity to the soon to come Tang Group Condo.
Tang Skyline Redhill Condo
The gross plot ratio for the site, which is on the Government Land Sales programme confirmed list for the 2nd half of 2015, is 3.5 and has the potential to yield around 750 units for Redhill Tang Group of Companies Condo.
Many analysts pointed out the rarity of having a Government Land Sales residential site being placed up for sale in this East Coast area. Due to the site’s development and size however, any real estate developer would need to have sufficient financial capacity in order to develop the project. This is why it is expected that any bidders will come from larger consortiums and developers in Tang Group Redhill Alexandra View Condo.
Also of note is that the site is a fair distance from the nearest working MRT station, Bedok, with an operational estimate for Siglap MRT stations being set for 2023, according to the time line set out by the Land Transport Authority.
Tang Skyline Alexandra View Condo
It seems that there is a wide variation in the estimates from property consultants, despite the site’s overall positive views, who feel a winning bid could be anywhere between $640 to $873 per square foot, per plot ratio.
Of all of the estimates, the most conservative one fell between $640 to $680 per square foot. Per plot ratio, coming from one analyst that projects the average selling figure for the project to be $1,300 per square foot, should the project be launched toward 2016’s year end, or perhaps early on in 2017. This is a move that would involve a price premium of between 25% to 30%, in comparison to the vicinity’s older developments, which saw leasehold and freehold project’s resale prices hovering at about $1,000 per square foot for Tang Group of Companies Redhill Condo.
Tang Group of Companies Redhill Condo
The vicinity’s older residential private developments have the potential to be redeveloped through en-bloc sales, however it has been hard to implement collective sales. One analyst has said that he believes developers could quite easily miss this window of opportunity, with the anticipation that there will be a change in the market by the time this project is launched, should they opt to take the longer process of gaining land via collective sales in Tang Skyline Redhill Condo.
However, another analyst pointed out that, since there are a few freehold projects in the area, the burden sits on the developer’s shoulders to come up with a value proposition that is compelling enough for a development with a 99 year leasehold. One concern for potential future buyers is the close proximity of the East Coast Parkway and the noise of traffic that results. If we use the transaction range from other leasehold flats in the area, $1,400 to $1,600 per square foot, as a benchmark, he expects that there will be between 6 to 8 bids for this site, with the highest winning bid to fall around $790 to $850 per square foot. The land parcel’s tender will close on the 14th of January, 2016.