URA closes tender for Canberra Drive and Fernvale Lane sites

Victor KangMarch 4, 2020

Canberra Drive GLS sites closed for tender

Parcels A and B received five and four bids respectively, while the EC site at Fernvale Lane was hotly-contested, with seven bids.

The tender for two private residential sites in Canberra Drive (Parcels A and B) and an executive condominium (EC) site in Fernvale Lane closed on Tuesday (3 March), with the land bids generally within market expectations.

“We believe developers probably took some comfort from the decent home sales in recent months and healthy buying interest in certain upcoming projects,” said Tricia Song, Head of Research for Singapore at Colliers International.

Canberra Drive’s Parcel A attracted five bids, with Oasis Development submitting the top bid of $129.2 million or $644 per sq ft per plot ratio (psf ppr).

The second highest offer of $124.9 million came from MCC Land (Singapore) and Greatview Group, while CSC Land Group (Singapore) submitted the lowest bid of $114 million.

 

Parcel B fetched four bids, with UOL-controlled United Venture Development (2020) placing the highest bid of $270.2 million or $650 psf ppr.

View details of the Canberra Drive sites here.

MCC Land (Singapore) and Greatview Group once again submitted the second-highest bid at $257.9 million. The lowest bid also came from CSC Land Group (Singapore) at $240 million.

Launched for sale under the Confirmed List of the Government Land Sale (GLS) programme for the second half of 2019, the two sites were initially listed as a single plot under the first half of the 2019 GLS programme. They are split into two plots on the Confirmed List to ensure that they will be more digestible and appealing to developers, said Desmond Sim, Head of Research for Southeast Asia at CBRE.

Read: Property price growth: Which districts had the highest price psf growth?

“Parcel B is almost twice as large as Parcel A, yielding up to 455 units while Parcel A can yield 220 units. The sites are attractive considering their proximity to Canberra MRT station, Sembawang Shopping Centre and Sun Plaza,” he added.

In fact, Liam Wee Sin, Group Chief Executive of UOL, expects the site to attract “healthy demand from the large catchment of owner-occupiers and potential HDB upgraders due to the increasing popularity of Canberra as a new integrated estate”.

Meanwhile, the EC site at Fernvale Lane drew seven bids, with the bids tightly bunched between $500 psf and $555 psf – reflecting a consensus on the site’s demand and pricing.

FCL or Frasers Property offered the highest bid of $286.5 million or $555 psf ppr, “pipping the second-placed Sing Holdings and MCC Land by just 0.5%”, said Song.

“The top bid price is slightly above our expectation of $500 psf ppr,” she added.

Song believes developers’ confidence may have been “boosted by the recent stellar performance” at EC projects such as OLA Residences in nearby Anchorvale, which received 1,163 e-applications or over two times than the 548 units offered within the Spanish-themed development. The 496-unit Parc Canberra EC also saw 64% or 316 units snapped up at an average price of $1,085 psf during its February launch.

Sim noted that while there is no nearby MRT station, the EC site is still near amenities like Greenwich V shopping mall. He expects the site to appeal to HDB upgraders in Punggol and Sengkang, “with at least 10,000 flats in these areas reaching their five-year minimum occupation period”.

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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg

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