The Urban Redevelopment Authority (URA) will be launching a Reserve List site at Farrer Road for sale by public tender.
This, after it accepted an application from an unnamed developer to release the 99-year leasehold residential site.
URA said a developer has committed to bid at a price of at least S$28.888 million in the tender for the plot.
That works out to S$699 per square foot per plot ratio.
Commenting on the announcement, Dennis Wee Group said the trigger price is about 15 per cent lower than the trigger price for a nearby site at Farrer Drive.
It expects the site to attract up to 10 bidders, with the estimated top bid to be in the range of S$950 to S$1,000 psf.
Lee Sze Teck, senior manager, Research and Consultancy, Dennis Wee Group, said: “The lower trigger price is probably influenced by ‘lacklustre sales at some centrally located projects’ recently, renewed concerns in Europe and the prospect of more sites being released in the second half of the year.
“Furthermore there remain unsold units in the nearby projects. With more buyers looking to buy from older project launches, the developer who triggered the site for sale knows that they have to be competitive in their pricing to win over buyers in this current market.”
The residential site is expected to generate a gross floor area of 3,839 square metres and could accomodate about 40 housing units.
The land parcel is located near Botanic Gardens MRT Station.
Under the Reserve List system, a site will only be put up for tender if the developer’s minimum bid price is acceptable to the government.
URA will launch the public tender for the site in about two weeks. The launch date will be announced later.
Source URA – 2012 Jul 18