Analysts say that the site is expected to get a good amount of interest, due to its locational attributes and affordable quantum.
A residential with commercial at first storey site located at Tanah Merah Kechil Link has been launched for sale by public tender under the Confirmed List of the first half 2020 Government Land Sales Programme, announced the Urban Redevelopment Authority on Thursday (28 May).
With an area of 8,880 sq m, the site has a maximum gross floor area of 24,864 sq m and a leasehold tenure of 99 years. It can potentially yield 265 housing units, said URA.
In view of the Covid-19 situation, developers are given a longer tender period for the site at five months, closing on 29 October.
URA revealed that the tender closing for the site will be batched with an executive condominium site at Yishun Avenue 9, which was launched on 30 April.
Lee Sze Teck, Director of Research at Huttons Asia, expects the site to receive healthy interest, as it had been way back in 2016 when the last site was sold within the area.
He noted that the site is currently being developed into Grandeur Park Residences, which is almost sold out.
“Furthermore this site is considered bite-sized at around 265 units and is one of the last two sites beside Tanah Merah MRT station,” he added.
He expects the top bids for the site to range between $780 per sq ft per plot ratio (psf ppr) and $830 psf ppr.
Wong Xian Yang, Associate Director of Research for Singapore and Southeast Asia at Cushman & Wakefield, also sees healthy demand for the site, citing strong locational attributes and affordable quantum.
“The site is situated in a strategic location and enjoys strong accessibility due to Tanah Merah MRT station and also numerous nearby amenities such as schools, a sports hall and retail malls like Bedok Mall and Changi City Point. It is also located near to Changi Business Park, the Singapore Expo and Singapore Changi Airport,” he said.
Despite the strategic location of the site, Wong believes developers would “bid cautiously due to higher construction costs and a severe economic recession as a result of Covid-19”.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email firstname.lastname@example.org