URA launches tender for GLS sites at Canberra Crescent, De Souza Avenue

SINGAPORE’S Urban Redevelopment Authority (URA) has released two residential sites at Canberra Crescent and De Souza Avenue for tender.

The land plots are confirmed list sites that fall under the government land sales (GLS) programme for the first half of 2024, URA announced on Tuesday (Apr 16).

Mogul.sg chief research officer Nicholas Mak believes property developers of all sizes would be attracted to both sites, which he deemed “Goldilocks”-sized land parcels – not too big nor too small.

He noted that six of the 10 GLS sites on the confirmed list are estimated to yield more than 500 units each. Some developers may consider such large projects riskier and avoid bidding for such land.

The first site at Canberra Crescent has a site area of 20,437.3 square metres (sq m) and a maximum gross floor area (GFA) of 32,700 sq m. URA estimates the plot could yield around 375 units.

“Developers may find the medium-sized site quite attractive as the overall land cost is manageable,” said OrangeTee & Tie chief executive Justin Quek.

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For ERA Singapore chief executive Marcus Chu, Sembawang – where the plot is located – has a relatively younger population that may see strong aspiration to upgrade to private homes, driving demand for new projects in the area. Two prior GLS sites in Canberra, which were awarded in March 2020, have since been fully sold.

Furthermore, the site is surrounded by a sizeable number of HDB flats that have reached their minimum occupation period status in the last five years, providing a critical mass of HDB upgraders who could be looking to upgrade in the near future.

PropNex head of research and content Wong Siew Ying also believes developers may seek to tap HDB upgrading demand from Yishun, another nearby public housing estate.

“We think this plot should appeal to developers owing to the limited unsold stock in the area, and the relatively manageable development size at 375 units,” Wong noted.

Property analysts expect the plot to attract between three and six bidders, with the top bid ranging between S$850 and S$1,000 per square foot per plot ratio (psf ppr).

The other plot at De Souza Avenue has a site area of 19,245.4 sq m and a maximum GFA of 30,793 sq m, potentially yielding around 355 units.

Wong believes it may not draw as much interest as the Canberra Crescent site, as Beauty World MRT station is a distance away, and there is unsold private housing stock in the area.

“Although it is not located in close proximity to Beauty World MRT station, the tranquil living environment and greenery views may appeal to prospective homeowners,” Quek said. 

Hutton’s senior director of data analytics Lee Sze Teck pointed out the land plot’s proximity to Bukit Batok Nature Park and Bukit Timah Nature Reserve. He noted that there are no new projects in the area and existing projects have been fully sold.

Analysts are anticipating one to five bidders for the plot with the highest price ranging between S$950 and S$1,300 psf ppr.

Mogul.sg’s Mak does not foresee much competition for the future condominium projects at both sites. The last residential launch in Canberra was Provence Residence executive condominium in April 2021 and Verdale in September 2020 for the area near De Souza Avenue.

“By the time the new developments at these two locations are launched in late 2025 or early 2026, there could be considerable pent-up demand for the new condominium units,” he said.

The tender comes amid plans by the Singapore government to make 5,450 residential units available via the confirmed list of the H1 2024 GLS programme. This is the highest supply of confirmed list units since the H2 2013 GLS programme.

The tenders for both sites will close at 12 pm on Jul 18.