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    Jun 12, 2014

    New choice sites in H2 land-sale slate

    PRIVATE housing sites in Lorong Puntong, in the Upper Thomson area, and in Tampines Road - diagonally opposite Kovan MRT station - are among the choicest sites in the second-half 2014 Government Land Sales (GLS) programme, said property consultants.

    The two plots are among new sites on the latest confirmed list.

    The Lorong Puntong land parcel, which is near the upcoming Bright Hill MRT station and is estimated to yield 280 homes, will be launched for tender in August. It is next to the Inglewood landed estate.

    CBRE's head of Singapore research, Desmond Sim, estimated the top bid for the plot to be at least $650-$700 per square foot per plot ratio (psf ppr). However, OrangeTee head of research and consultancy Christine Li pegged the site's price at $720-$745 psf ppr.

    Ms Li estimated the price of the Kovan site - slated for launch in September - at $690-$720 psf ppr, while Mr Sim estimated that the winning bid would be at least $650-$700 psf ppr.

    While the site could generate interest due to its proximity to the Kovan MRT station and nearby amenities, "its main drawback is that it is fronting two busy roads: Tampines and Upper Serangoon", said JLL national director Ong Teck Hui.

    The site is estimated to yield 340 homes.

    Ms Li also expects a good response from developers for the housing site in Jurong West Street 41 - near Jurong Lake - which has been rolled over from the H1 reserve list to the H2 confirmed list. The site is located between The Lakeshore condo and the Lakeville project. She estimated the site's price at $670-$710 psf ppr.

    Also on the favourites list of most consultants are the two commercial and residential sites on the confirmed list: in Yishun Avenue 4 and the Holland Road site, which will form part of the Holland Village Extension plan unveiled in the Urban Redevelopment Authority's Master Plan 2014.

    Mr Ong noted that these two land parcels are likely to be the most attractive of the sites in the H2 GLS programme as they "contain substantial commercial quantum, which could provide a positive balance to the residential component, given the challenging residential market".

    The choicer Holland Road plot is near the Holland Village MRT station, while the Yishun site is located in a mature Housing Board estate, where the surrounding households will provide strong catchment for shops and food-and-beverage outlets in the commercial component, Mr Ong added.

    On the reserve list - under which sites are released upon successful application by a developer - the Ministry of National Development has added a housing site in Dundee Road, next to the Queenstown MRT station and the popular Commonwealth Towers condo which is under construction.

    Colliers International director Chia Siew Chuin expects the proposed development on the site to attract a potential pool of HDB upgraders from the Commonwealth, Queenstown and Redhill estates.