URA, HDB release Jalan Tembusu, Tampines Street 62 residential sites for sale

Vivienne Tay

Published Thu, May 27, 2021 · 03:44 PM

THE Urban Redevelopment Authority (URA) and the Housing & Development Board (HDB) on Thursday released two residential land parcels at Jalan Tembusu and Tampines Street 62 (Parcel B) for sale.

Both sites, which have a lease period of 99 years, fall under the reserve list in the first half 2021 government land sales programme. They are available for application and can yield about 1,340 residential units, URA and HDB said in a joint press statement.

The URA site at Jalan Tembusu is expected to yield 640 units. It has a site area of 19,567.6 square metres (sq m) and maximum gross floor area (GFA) of 54,790 sq m. The maximum building height is 70-75 metres Singapore height datum (SHD).

Ong Teck Hui, JLL senior director of research and consultancy, noted that the site has strong locational attributes. It is within walking distance to the upcoming Tanjong Katong MRT station and in proximity to the popular East Coast Park. The site is also near schools such as Tanjong Katong Girls' School, Tanjong Katong Primary School and others, he added.

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However, analysts were mixed on the probability of the Jalan Tembusu plot being triggered for sale.

Huttons Asia chief executive Mark Yip holds the view that the plot has a high probability of getting triggered as developers are starved of well-located sites. The plot sits in District 15, which he said is a popular area for many buyers. It also offers unblocked views as homes in the vicinity are predominantly landed and low-rise developments, he added.

In contrast, ERA Realty head of research and consultancy Nicholas Mak said the plot, while attractive, would require bigger commitment from developers as there could be more than 600 units to be developed.

"Given the uncertain Covid-19 situation and risk of cooling measures, developers might be hesitant to trigger this private residential land plot for tender," Mr Mak said.

If triggered for sale, property analysts are projecting a top bid of about S$1,100 to S$1,500 per square foot per plot ratio (psf ppr) for the Jalan Tembusu site. JLL's Mr Ong said the plot may see 10 to 15 bidders.

Meanwhile, the HDB executive condominium (EC) site at Tampines Street 62 (Parcel B) is expected to yield about 700 EC units. The plot spans 28,000.2 sq m and has a maximum GFA of 70,001 sq m. The maximum building height is 64 metres SHD.

Huttons Asia director of research Lee Sze Teck said EC sites are a good alternative to private residential living and seldom subject to cooling measures from the authorities.

"In this Covid-19 environment where the supply of labour is uncertain, the 15-month time bar on EC actually helps. Developers can delay appointing a contractor till the situation is more stable," Mr Lee said.

However, the Parcel B site is unlikely to be triggered even though it is in a mature estate, he added. This is because the neighbouring Parcel A site has yet to be sold and developers would want to spread out the launch of projects, as well as "have a feel" of the land bid for Parcel A. The Parcel A site was launched in mid-April this year.

If triggered for sale, analysts estimate the top bid for the Tampines Street 62 (Parcel B) site to be between S$550 and S$620 psf ppr. Mr Ong said there could be seven to 10 parties bidding for the plot.

Reserve list sites are put up for tender when a developer makes an offer acceptable to the government. This is in contrast to confirmed list sites, which are launched according to schedule regardless of demand.