Reserve site in Upper Serangoon triggered for tender

99-year condo plot near mall and MRT station likely to draw keen interest

A condominium site in Lorong Lew Lian in Upper Serangoon has been launched for sale by public tender.

The sale was triggered for the reserve list plot after a developer committed to a minimum bid price of $250 million last month.

The 99-year leasehold site is opposite Paya Lebar Methodist Church and near the Serangoon MRT station and Nex mall.

The 150,710.74 sq ft plot, which is on the Government Land Sales programme for this half of the year, can yield about 465 units and has a maximum permissible gross floor area of 452,137.61 sq ft.

The site is expected to draw keen interest from developers, given its well-connected location.

Mr Nicholas Mak, executive director of SLP International, said the land parcel could draw more than 10 bids, with the top ranging from $630 to $700 per sq ft per plot ratio (psf ppr).

"The site is in quite a good location, not too far from the Circle Line and North-East Line MRT stations. It is also in a particular part of Serangoon where there has not been a lot of new launches recently. This could spell buying interest."

Mr Ong Kah Seng, director of R'ST Research, said bidding interest will likely be "fairly warm - though not overwhelming, as the Total Debt Servicing Ratio is very likely to stay even if other cooling measures are lifted in 2016".

He said the sale could have been triggered partly due to a "slight improvement in developers' sentiments" as some are banking on the possibility that the property cooling measures may be lifted now that the elections are over.

Mr Ong expects the average project selling price to be in the $1,300 psf to $1,350 psf range, given that the break-even price is about $1,100 psf.

"There is strong HDB upgraders' demand for private condos in the north-eastern locality, and Serangoon (Central) offers the best of all worlds - it is more centrally located compared to Hougang, Sengkang and Punggol, and... is more affordable compared to Potong Pasir."

Mr Ong noted that recent condominium launches in the area, such as High Park Residences in Fernvale Road and Botanique at Bartley in Upper Paya Lebar Road, have received an "overwhelming" response from buyers.

Average prices at High Park Residences over the last six months, for instance, stand at about $990 psf, according to Squarefoot Research.

The tender for the site will close at noon on Nov 5, said the Urban Development Authority yesterday.

Any tender below the minimum bid price of $250 million will not be considered, it added.

A version of this article appeared in the print edition of The Straits Times on October 02, 2015, with the headline 'Reserve site in Upper Serangoon triggered for tender'. Print Edition | Subscribe