EC site in Fernvale up for tender, Tampines site released for application

THE Housing and Development Board on Monday released two executive condominium (EC) sites, one along Fernvale Lane and the other on Tampines Street 62.

Both 99-year leasehold land parcels can yield up to a total of 1,100 residential units, HDB said.

The Fernvale site was launched for sale by public tender, under the confirmed list of the H2 2019 government land sales (GLS) programme.

It spans some 17,130 square metres (sq m) in land area, with a maximum permissible gross floor area (GFA) of 47,964 sq m and a maximum building height of 56 metres above mean sea level. The estimated number of EC housing units is 480.

The Fernvale Lane site is across the road from shopping mall Greenwich V. Fernvale LRT station and The Seletar Mall are about a nine-minute walk away, and schools nearby include Fernvale Primary School and Sengkang Green Primary School.

Nicholas Mak, head of research and consultancy at ERA Realty, said: "This site will be popular among EC developers as there is a limited supply of unsold EC units in the primary market. There are fewer than 380 launched and unsold new EC units in the Singapore market."

Although there are four EC developments that could be launched in the next 15 months, each launch is "very likely" to be months apart from each other, Mr Mak added.

Comparable ECs near the Fernvale site include the 380-unit Lush Acres which had a median transacted unit price of S$938 per square foot (psf) from January to November this year, and the 700-unit The Topiary with a median price of S$852 psf, based on data from the Urban Redevelopment Authority and ERA Research and Consultancy.

Mr Mak expects the tender for the Fernvale Lane site to draw about six to nine bids, with the top bid ranging from S$280 million to S$295 million, which will translate to a land rate of about S$540-570 per square foot per plot ratio (psf ppr).

Tricia Song, Colliers International's head of research for Singapore, expects seven to nine bids for the site. The top bid will likely come in at S$260 million or S$500 psf ppr, with a projected end-selling price of S$950-1,000 psf, said Ms Song.

The Fernvale site's tender closes at noon on March 3, 2020. The tender closing will be batched with those of two other residential sites at Canberra Drive launched in November by URA.

Meanwhile, the Tampines land parcel was released for application under the reserve list of the H2 2019 GLS programme. Sites on the reserve list will be put up for tender when a developer has indicated a minimum price which is accepted by the government.

Mr Mak said on Monday: "This site is not expected to be triggered for tender in the coming months, given that Tampines Street 62 is still under construction and there are empty plots of land adjacent which could potentially add on to the supply of residential land and lead to muted demand from developers."

Ms Song from Colliers noted that there is a new 700-unit EC nearby at Tampines Ave 10 which could be launched by mid-2020. "A good performance (at the Ave 10 EC) could trigger the release of this reserve-list site on Street 62," she said. "Otherwise, we believe there is ample new private stock in the Tampines/Pasir Ris precinct."

The Tampines Street 62 site takes up 23,799 sq m in land area, with a maximum GFA of 59,498 sq m and a maximum building height of 63-64 metres above mean sea level. The estimated number of EC housing units is 595.

It is near Tampines Eco Green Park, and a four-minute drive to Pasir Ris MRT station. Schools in the vicinity include Tampines North Primary School, Gongshang Primary School and Dunman Secondary School.

If the reserve-list site is offered for sale in the current market, it is likely to attract a slightly lower level of interest from developers compared to the previous EC site at Tampines Avenue 10, due to its less accessible location, said Mr Mak.

The top bid for the Tampines Street 62 site might vary from S$336 million to S$360 million, which will translate to a land rate of S$525-562 psf ppr, he noted.