The Housing and Development Board (HDB) released for sale on Monday (27 August) a ‘white site’ measuring 409,068.42 sq ft in Pasir Ris Drive/Pasir Ris Central that can potentially yield about 600 private homes, reported the Straits Times.
Located next to the Pasir Ris MRT station, the residential and commercial site is offered under a 99-year leasehold tenure. It has a gross plot ratio of 2.5 and maximum gross floor area of 1,022,679.1 sq ft
“The white site in Pasir Ris Central is part of the government’s plans to rejuvenate the Pasir Ris district. Its proximity to the Pasir Ris MRT station and large population catchment should appeal to developers. It would also be the first mixed-use development – commercial and residential – in the Pasir Ris town centre,” said Colliers International’s research head for Singapore Tricia Song.
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Aside from the 386,424.38 sq ft set aside for commercial purposes, the site will be used for a mixed-use development featuring a town plaza, polyclinic, heritage garden and child care centre. The winning bidder is also required to build a link bridge and underground linkway, along with an Integrated Bus Interchange with MINDEF Pick-Up and Drop-Off point.
“There has been an influx of project completions in Pasir Ris in the past few years, resulting in heightened demand for amenities. Thus, the injection of a white site with commercial component is timely,” said Huttons Asia’s research head Lee Sze Teck.
“We are likely to see joint ventures between developers particularly those with prior experience in such projects or REITs sponsors bidding for the site as such plum sites are not easily available.”
Song agrees that the site could likely attract major developers or a consortium of them. However, the plot has some drawbacks compared to the recently sold state land in Sengkang Central, which is expected to contain 700 houses, and there’s no nearby competing mall there.
“We estimate that tender could attract four to eight bids with the top bid of $820 million ($800 psf ppr). This compares with the most recent Sengkang Central tender which attracted seven proposals from six bidders with a top bid of $778 million ($924psf ppr),” she added.
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The tender exercise for the Pasir Ris site will be done via a Concept and Price Revenue Tender System (two-envelope system). The concept of the proposed project will be evaluated first based on its Quality of Public Realm and Quality of Design Concept, as well as the developer’s track record. Thereafter, only the price offered by bidders with qualifying concept proposals will be considered.
The tender exercise will close on 14 December 2018. Before that, HDB will hold a briefing on the key planning and urban design requirements for the site and the concept evaluation criteria on 11 September.
Eugenia Rosaline Shlaen edited this story. To contact her about this or other stories, email eugenia@propertyguru.com.sg
