A residential site in Toh Tuck Road that can yield about 325 condominium units is likely to draw keen interest from developers.
The 99-year leasehold plot was launched for sale via public tender by the Urban Redevelopment Authority (URA) yesterday.
It is the first residential site offered under the confirmed list of the Government Land Sales programme in this half of the year.
The 18,721.4 sq m site is in an established residential area and near Bukit Batok Nature Park and Bukit Timah Nature Reserve. It has a maximum gross floor area of about 26,210 sq m and maximum building height of five storeys.
"Some developers may be attracted to this site for its proximity to the Beauty World MRT Station and its manageable size. Therefore, this site is expected to be hotly contested," said Mr Nicholas Mak, research head at SLP International Property Consultants.
Other amenities in the area include Beauty World Plaza, Bukit Timah Shopping Centre, Pei Hwa Presbyterian Primary School and Ngee Ann Polytechnic.
PropNex Realty chief executive Ismail Gafoor said the site will be attractive to developers because it is "within an established area, well favoured by entrepreneurs and middle-upper income group".
Analysts told The Straits Times that they expect the tender would be competitive, attracting anything from five to 16 bids, as developers are eager to build up their land banks.
CBRE Research expects a "healthy level of interest from more than 10 mid-cap developers who will probably be attracted by the relatively small site and affordable quantum of less than $200 million".
Mr Ismail estimates the top bid could come in at $170 million to $190 million ($600 to $650 per sq ft per plot ratio), while Mr Mak puts it at $185 million to $200 million ($655 to $700 psf ppr).
The last residential site to be launched in the area was in Jalan Jurong Kechil in 2012, on which The Hilford - a 60-year leasehold development - is being built.
"Assuming there are no future en-bloc sales nearby, there is limited new supply in the area. As such, the future launch would face little competition," said Mr Wong Xian Yang, head of research and consultancy at OrangeTee.
The URA said the tender will close at noon on April 11.
Wong Siew Ying
