The two Pine Grove sites can potentially yield up to 1,085 units altogether. Source: URA
Two residential sites at Pine Grove (Parcels A and B) that can jointly yield up to 1,085 units have been released for sale under the reserve list of the second half 2021 Government Land Sales (GLS) programme, announced the Urban Redevelopment Authority (URA) on Tuesday (30 November).
Under the reserve list system, a site will only be released for sale once it receives an offer of a minimum price which is acceptable to the government. Confirmed list sites, on the other hand, are launched according to schedule regardless of demand.
With an area of 22,534.7 sq m, Parcel A has a maximum gross floor area (GFA) of 47,323 sq m and can yield 520 units. Parcel B, on the other hand, spans 25,039.2 sq m and has a maximum GFA of 52,582 sq m. It can yield 565 units. Both sites come with a 99-year leasehold tenure.
Tricia Song, Head of Research for Southeast Asia at CBRE expects the sites to draw demand from developers, given their location within a relatively popular residential enclave and palatable size per parcel.
Key attractions include proximity to Holland Village, and the one-north precinct. The sites are also near various schools including Henry Park Primary School, National University of Singapore (NUS), Ngee Ann Polytechnic as well as School of Science and Technology Singapore.
“We note that there are dwelling unit caps on both sites to manage traffic demand in the area. Parcel A can be built up to 520 dwelling units or an average 980 sq ft per unit, while Parcel B’s cap is 565 units or an average of 1,002 sq ft per unit,” said Song.
The minimum unit size is slightly larger “than the implied 85 sq m or 915 sq ft per URA guidelines for non-Landed Residential Developments outside the Central Area in January 2019”, she said.
“However, given the large combined size of the offering and the consideration of affordability due to the minimum average unit size, we expect the top bid to be more tempered, compared to the most recent tenders of two parcels at Slim Barracks, which have a smaller total quantum of 400 units and had achieved top bids of $1,210 to $1,246 per sq ft per plot ratio (psf ppr).”
If either of the sites is launched for tender, developers may be looking at a selling price of 1,900 to $2,000 psf, with a land rate of $1,000 to $1,100 psf ppr, added Song.
Meanwhile, Huttons Asia believes that the chances of the sites being triggered for sale are not high.
This comes as there are “better sites on the Confirmed List such as Jalan Tembusu and upcoming en bloc sites which will satiate developer’s appetite for land”, it said.
Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: [email protected].