Two govt residential sites in Bt Timah, Hillview up for sale

Two 99-year leasehold government land sites in the Bukit Timah and Hillview areas, where new private home supply is limited amid strong demand, have been released for sale via public tender.

Developers' interest is expected to be healthy for these sites in the city fringe and suburbs in view of their palatable size and the robust take-up of new launches in these sub-markets - Piccadilly Grand, Liv@MB and AMO Residence.

The two land parcels, which can yield a total of 495 homes, are on the confirmed list of the Government Land Sales (GLS) programme for the second half of this year, the Urban Redevelopment Authority announced on Wednesday.

Located next to Beauty World MRT station, the 4,611.1 sq m Bukit Timah Link site can yield 160 units, while the 10,395.2 sq m Hillview Rise site can yield 335 units.

JLL senior director for research and consultancy Ong Teck Hui said the land parcels should draw strong demand from developers that need to replenish their land banks due to low unsold new home stock.

"There are also limited residential sites available under the confirmed list of the GLS programme, and it is a challenge to secure collective sale sites due to a mismatch in price expectations between sellers and buyers," he said.

OrangeTee & Tie chief executive Steven Tan said the two small plots could attract more interest because of the lower development risks and costs.

For bigger upcoming sites in Tampines Avenue 11 (an estimated 1,190 units) and Marina Garden Lane (an estimated 795 units), developers may need to enter into joint venture partnerships to pool resources and share costs, he said.

Strong sales at The Linq @ Beauty World nearby, with 96 per cent of its units transacted at an average of $2,200 per sq ft (psf) in its November 2020 launch, could raise developers' confidence about the Bukit Timah Link site, said Ms Wong Siew Ying, head of research and content at PropNex Realty.

ERA Realty's head of research and consultancy Nicholas Mak believes that although the Bukit Timah Link site is expected to draw developers, an upcoming mixed-use project in nearby Jalan Anak Bukit (an estimated 700 homes) may pose strong competition for future developments on the site.

Most analysts expect the Bukit Timah Link site to attract top bids of between $1,200 and $1,300 psf per plot ratio (ppr), or a total quantum of below $200 million.

The Hillview Rise site is also expected to see healthy bidding, as "the lack of suburban new home supply is unlikely to be resolved any time soon", Mr Tan said. "Further, nearby projects such as Dairy Farm Residences, Mont Botanik Residence and Verdale have sold all or almost all of their units."

Huttons Asia's senior research director Lee Sze Teck said there is little competition in the Hillview area as the nearest project, Midwood, which was launched for sale in October 2019, is fully sold.

Ms Wong estimated that the Hillview Rise site could attract top bids of $313 million to $345 million, reflecting a land rate of $1,000 to $1,100 psf ppr.

Bukit Timah Link is near malls like Beauty World Centre and Bukit Timah Shopping Centre, and schools like Pei Hwa Presbyterian Primary and Methodist Girls'.

Hillview Rise, which is within walking distance of Hillview MRT station, is near The Rail Mall, Dairy Farm Nature Park and Bukit Timah Nature Reserve.

The tenders for both sites will close at noon on Nov 3.