The Government Land Sales Programme confirmed list launched the mixed commercial/housing site at Potong Pasir for sale. The site, which is next to Potong Pasir MRT station, is expected to elicit between four and eight bids. Consultants’ predictions as to the likely top bid for the site, varied greatly between $650 and $900 psf of the potential gross floor area. Tenders for this site close on August 19th 2014.
The Government’s reserve list also made an executive condominium site, at the junction of Sembawang Road and Canberra Link, available for application recently. However, those, who keep a close eye on the property market, do not expect its launch to be triggered in the immediate future because there is enough supply of such sites at the present time. Both the EC site and Potong Pasir sites have 99 year leases.Sites which appear on the reserve list can only be launched for tender, when a developer applies to the state, undertaking to bid at least the minimum bid price that the Government thinks acceptable. Those sites appearing on the confirmed list launch automatically for tender when they are scheduled to do so whether there is demand or not.
Highest Bids for Potong Pasir Plots
The Potong Pasir site, on Meyappa Chettiar Road, is 1.6 hectares. Developers can build a 13 – 16 storey project having a maximum gross floor area of 608,408 square foot or 56,523 square metres, of which a maximum of 5,000 square metres or 53,819.5 square foot, 8.8% of the total gross floor area can have a commercial use. Only 500 square metres of the space allowed for commercial uses may be used for restaurants, because of traffic congestion. The Urban Redevelopment Authority has placed other limitations on the uses re are other limitations on the project’s commercial portion, which may not be used for public houses, bars, karaoke lounges, night clubs, or massage parlours because they encourage disturbance to both project residents and residents in the wider surrounding area, for example by noise and disorderly behaviour.
The URA’s 5,000 square metre limitation on the site’s total commercial use is because the neighbourhood already contains nearby retail facilities and it does not wish the area’s road networks to suffer further strain. The residential portion of the site could hold around 685 homes. A pedestrian walk way through the blocks to the MRT station has been stipulated.
This site makes the fifth that the URA will have sold in the area surrounding Potong Pasir MRT station in the past four years. The four previously sold sites are currently under development, there are three condominium developments; Nin Residence, Sennet Residence and Sant Ritz, and one mixed use development, The Venue Residences and Shoppes.
Consultants estimate that the Sembawang Executive Condominium site will be priced at between $280 and $350 per square foot ppr. A consortium comprising City Developments and TID won the state tender for the next door plot in January 2014 with a bid of $350 per square foot ppr. A nearby executive condominium project, SkyPark Residences, which was launched in the 4th quarter 2013 had sold only 293 of its 506 units by the end of March 2014.