SINGAPORE: Two housing sites and one residential with commercial site with a combined yield of 1,545 homes were released for sale under the first half 2019 Government Land Sales (GLS) Programme on Thursday (Jun 27).
The plot of residential land with a commercial component on the first storey is located at one-north Gateway.
The 5,778.7 sq m site, launched for sale under the Confirmed List, is the smallest of the batch with a potential yield of 165 units. It has a maximum gross floor area of 14,447 sq m.
It is, however, expected to be popular among developers because of the high investment potential and rental demand in the one-north area, said analysts.
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"The one-north area was designed as a business park and high-tech research and development hub. Private homes in the vicinity have high investment potential given that the area has good rental demand and healthy capital appreciation," said Ms Christine Sun, head of research and consultancy at OrangeTee & Tie.
She expects the site to draw about eight to 10 developers, with bids at between S$1,100 and $1,200 psf ppr.
"Given that this development may attract many investors, the development may comprise of a number of smaller units which could be sold at a higher per sq foot price of between S$1,900 to S$2,000 psf," she added.
The tender for site at one-north Gateway will close at noon on Sep 5.
RESIDENTIAL SITES AT HILLVIEW RISE, DUNMAN ROAD UNDER RESERVE LIST
The residential sites at Hillview Rise and Dunman Road, which are located near Hillview and Dakota MRT stations respectively, are released under the Reserve List.
At 10,395.2 sq m, the Hillview Rise site has a maximum gross floor area of 29,107 sq m and may yield 340 units.
Analysts are not overly optimistic that they may be triggered for sale, given the current supply and inventory.
"Given the increasing supply of new homes, most developers may be less active in their land acquisition. Some may prefer to pare down their existing stock before expanding their current land bank," said Ms Sun.
Of the two, Ms Tricia Song, head of research for Singapore at Colliers International, pointed to Dunman Road as being more attractive, given its proximity to Dakota MRT station, several well-known schools as well as views of East Coast.
"However, a concern could be its relatively larger size – 1,040 buildable units," said Ms Song.
Ms Sun agreed: "Large plots like the Dunman Road site which require a bigger capital outlay may not be as attractive now."