Two interesting reserve list land sites are for tender sales as both received a bid that met the minimum sum acceptable to the government. The first site is a residential plot in the Upper Bukit Timah area near to Beauty World MRT station. The second site is a land parcel for the first hotel use in the Jurong Lake District.
The residential site is about 109,792 square feet located at Jalan Jurong Kechil which is zoned residential where a developer recently bidded at least $24 million. This land site is suitable for retirement housing as the lease tenure option is either 30, 45 or 60 years. This site is also near to the German European School, Canadian International School and popular local education institution like Pei Hwa Pri school, Ngee Ann Polytechnic, SIM, NUS etc.
The developer for this site will likely opt for the 60 year lease and thus the land site will cost lower than the normal 99-year leasehold site from the Government. It is expected to receive bids from $31 million to $43 million which is equivalent to $200 to $280 psf ppr from between 5 to 10 developers.
As for the 99-year leasehold hotel land parcel, it will be the first hotel-zoning site available for the Jurong Lake District where another developer placed a minimum acceptable bid of at least $102 million. The Jurong East district is being transformed to be the next mega commercial hub outside the CBD. As the surrounding land sites are zoned commercial as well which will create a critical mass of businesses operating in the commercial hub when all the sites are fully developed.
The 96,875 square feet site is estimated to be developed into a four-star 700-room business hotel to meet the anticipated demand within the upcoming commercial hub. The wining bid is expected to be from $650 to $700 psf ppr.
10 Sep 2012