URA releases two residential sites for sale

Perumal Road site, on confirmed list, expected to draw stronger interest than reserve list site in Toh Tuck Road

The Urban Redevelopment Authority (URA) yesterday released for sale two sites which together can yield about 525 residential units.

Analysts expect stronger interest in one site, in Perumal Road, with room for 200 units along with commercial space on the first floor.

The 3,848 sq m site with a maximum gross floor area (GFA) of 16,161 sq m is being launched for tender under the confirmed list.

The Perumal Road site is near Farrer Park MRT Station and commercial amenities such as City Square Mall and Mustafa Centre within the Little India Historic District.

Schools in the area include Farrer Park Primary, Hong Wen and St Joseph's Institution Junior.

The second site, in Toh Tuck Road, is on the reserve list, so it goes to tender only when a developer commits to a minimum bid price acceptable to the Government.

Both are 99-year leasehold sites and are being offered under the Government Land Sales (GLS) Programme for this half of the year.

The Toh Tuck Road site, able to yield about 325 units, has a maximum GFA of 26,210 sq m on a plot that spans 18,721 sq m.

It is in an established residential area, and is near the Bukit Batok Nature Park and Bukit Timah Nature Reserve, as well as schools such as Pei Hwa Primary and Ngee Ann Polytechnic.

Analysts expect the Perumal Road plot to be more appealing to developers, owing to its "petite size", city fringe location and proximity to an MRT station.

"Developers are likely to bid actively and fairly aggressively for this well-located site... I'll expect seven to 10 bidders," said R'ST Research director Ong Kah Seng.

PropNex Realty told The Straits Times it expects 10 to 15 bids for the Perumal Road plot, taking its cue from the tender for a nearby Sturdee Road plot last March, which attracted a total of 16 bids.

Ms Christine Li, research director at Cushman & Wakefield, expects the site to command a premium, given its better attributes, but noted: "This price premium could be dampened due to its next-door proximity to Sri Srinivasa Perumal Temple, which might result in increased noise levels during religious festivities."

The site is expected to fetch $280 million to $295 million (or $800 to $850 psf per plot ratio); while the Toh Tuck Road plot could go for $210 million to $225 million ($750 to $800 psf ppr), said Ms Li.

Real estate firm OrangeTee said the Toh Tuck Road parcel could attract five to 10 bids, should the site be triggered for sale.

"The site should see relatively good demand from developers if it is activated, in view of developers' hunger for land and the dearth of new launches in the area," noted OrangeTee head of research & consultancy Wong Xian Yang.

The URA said the tender for the land parcel in Perumal Road will close at noon on Jan 10.

A version of this article appeared in the print edition of The Straits Times on November 30, 2016, with the headline 'URA releases two residential sites for sale'. Print Edition | Subscribe