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Land sales at one-north Gateway will appeal to niche developers

by • June 29, 2019 • Land SalesComments (0)118

The Urban Redevelopment Authority (URA) on June 27, released three sites for sale under the 1st half 2019 Government Land Sales (GLS) Programme. The plot at one-north Gateway is launched for sale under the Confirmed List while two others – in Dunman Road and Hillview Rise – are released under the Reserve List. All in, the three sites can yield about 1,545 residential units, URA said.

The one-north Gateway site is launched for sale under the confirmed list, with the residential with commercial at first storey, the site has an area of 5,778.7 sq m and a maximum gross floor area (GFA) of 14,447 sq m. The height control for the first two stories is 23 m – 25 m above mean sea level (AMSL), while the overall building height control stands at 61 m – 87.5 m AMSL.

land sales

Image credit: URA

URA said that the land sales here is part of JTC’s “continued efforts to inject more residential spaces in the one-north estate to meet the housing needs and enhance the area as a vibrant mixed use business park”.

Commenting on the 1st half 2019 Government Land Sales Programme, Colliers International noted that the one-north Gateway site is the smallest site on the Confirmed List with the potential to build 165 units.

Ms Tricia Song, Head of Research for Singapore at Colliers International said, “the plot is next to the one-north Residences which was completed in 2009 and we think the new site should supplement the housing demand generated by the growing working population in the one-north technology enclave.

“While investment demand has been dampened by the fresh cooling measures, the site is palatable and could appeal to niche developers. one-north Residences have transacted at around SGD1,500 psf for units around 900-1,000 square feet in the year-to-date 2019. We expect a top bid of SGD155 million or SGD1,000 per square foot per plot ratio (psf ppr), and the developer could look to sell at SGD1,600 psf, taking into account the minimum average unit size requirement of 85 sq m.”

CBRE’s Head of Research for Southeast Asia, Desmond Sim, commenting on the land sales at one-north Gateway site said:

“The site released at one-north Gateway sits well in the midst of a mature precinct comprising businesses and educational institutions. It could provide residential options to the working population in this precinct, both local and foreign. Yielding only 170 units, it is also a palatable site that will appeal to a variety of developers – both big and small. It is likely to receive competitive bids from developers who need to replenish their land bank.

“Upon completion, this development is expected to meet the demands of the existing working population in the vicinity, without placing too much stress on existing infrastructure. As the last site launched in the one-north precinct was way back in 2005, CBRE expects keen competition of between 6 to 10 bidders for this site.”

Mr Paul Ho, chief mortgage executive at iCompareLoan commenting on the land sales at one-North Gateway said, “the site will appeal to select developers because of its size. The R&D and high technology cluster at one-north, comprising biomedical sciences, infocomm technology and media industries, means that there is a sizable workforce in that area. Development here will appeal to the existing workforce.”

Commenting on the Dunman Road site, Colliers said that it is the most attractive site on the Reserve List – given its proximity to the Dakota MRT station, predominantly unblocked views of the East Coast and within minutes’ drive to town. The site is also near good schools and the Sports Hub.

“However, a concern could be its relatively larger size – 1,040 buildable units. Nearby Waterbank at Dakota (completed in 2013) and Dakota Residences (completed in 2010) had transacted at around SGD1,450-1,650 psf in the year-to-date 2019. We expect this site to appeal to larger developers or joint ventures and could attract a top bid of SGD1.1 billion or SGD1,160 psf ppr – this could potentially pave the way for a new benchmark pricing to be set for the area.”

Colliers noted that the new Hillview Rise site is just across another Hillview Rise plot that was awarded to Hong Leong Group on a Concept-and-Price dual envelop basis on 3 July 2018 at SGD460 million or SGD1,068 psf ppr. Hong Leong Group’s site named Midwood will house 564 units and could be launched soon.

“Nearby relatively newly completed and 99-year leasehold projects, Hillier (completed in 2016) and Kingsford Hillview Peak (completed in 2017) transacted at SGD1,380-1,480 psf in the year-to-date 2019. Given the ample supply and lukewarm response to some sites in the vicinity post-cooling measures, we do not expect this site to be triggered soon.”

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