Two Housing & Development Board (HDB) residential sites on the government’s reserve list have attracted minimum committed bids and will now go on sale by public tender.

A 235,897.3-square-foot site at Bishan Street 22/25 - with a plot ratio of 3.5 - has drawn a minimum committed bid of $194 million or $235 per square foot per plot ratio (psf ppr).

And a 124,876.3-sq-ft site at Dakota Crescent, Geylang S5 - with plot ratio of 3.5 - has drawn a minimum committed bid of $115.8 million or $265 psf ppr. When the sites are eventually awarded, they will be the first solely private residential sites sold since April 2002 when NTUC Choice Homes and Chip Eng Leong Enterprise won the tender for a site in Ang Mo Kio for $244 psf ppr. NTUC Choice Homes did win an HDB commercial/residential site next to Yew Tee MRT Station for $308 psf ppr in September 2005, while a Guthrie-Lee Kim Tah-TMW consortium won an HDB commercial/residential site at Jurong West for $329 psf per two months earlier.

Colliers International director for investment sales Ho Eng Joo reckons projects on the two latest sites will attract HDB upgraders rather than investors.

He estimates the Bishan site could go for $260-$290 psf ppr and the Dakota Crescent site could fetch a higher $300-$350 psf ppr because it is nearer the city.

He sees breakeven cost will at more than $500 psf and $600 psf respectively.

Savills Research estimates the Bishan Street 22/25 site could go for $300-$400 psf ppr or $248 million-$330 million and the Dakota Crescent site for $275-$350 psf ppr or $120-$153 million.

Savills executive director (residential) David Neubronner said the Bishan site, close to several good schools and facing Bishan Park, could attract developers like NTUC Choice Homes, Far East Organization and Wing Tai, while the Dakota Crescent site, which is on the fringe of prime areas in eastern Singapore, could attract the likes of CapitaLand, Guocoland, Hong Leong and Far East Organization.

‘We would also not be surprised if they team up like what we saw happening at Casa Merah,’ Mr Neubronner said.

He also thinks that it is possible the same developer triggered the sale of both sites.

Savills expects prices of mass-market condominiums to rise 8-10 per cent this year.

Source: The Business Times, 24 April 2007