Downtown Residential Site Put On Confirmed List

Source : The Business Times, September 5, 2007

THE Urban Redevelopment Authority (URA) has put a residential site at Enggor Street on the Confirmed List of the Government Land Sales Programme for the second half of 2007.

Previously on the Reserve List, the site - Enggor Street (Land Parcel A) - is now almost certainly assured of a faster sale as it no longer requires a committed minimum bid before being put up for public tender.

The site has an area of about 0.30 ha and can generate a maximum permissible gross floor area of about 25,504 sq m (274,522.5 sq ft), and is zoned for residential use with commercial use on the first storey.

CBRE Research executive director Li Hiaw Ho notes that transactions in June and July showed that prices for units at the neighbouring Icon ranged from $1,150 psf to $1,700 psf while those at The Clift ranged from $1,400 psf and $2,100 psf.

'The subject site can be developed into 260-300 apartments and assuming that it will take up the commercial option for the first storey, we expect that the site could fetch a price of $180 million to $200 million or $655 per square foot per plot ratio (psf ppr) to $715 psf ppr,' said Mr Li.

'At this level, the residential units could be launched at around $1,300 psf to $1,400 psf,' he added.

In May, the URA announced that it would temporarily disallow the conversion of office use in the Central Area, which includes the CBD, to other uses like residential apartments until Dec 31, 2009, to curb further depletion of the existing stock of office space.

The move put on hold the strategy to revitalise the CBD by encouraging owners to redevelop their old office buildings.

Mr Li notes that the core CBD area has traditionally been a place for business and as such, human activities tend to be confined to business hours on weekdays.

But revitalisation of the CBD could continue regardless of the temporary halt on office conversions. Already being built are Icon, Lumiere, The Clift, and One Shenton.

'With the live-in population of the core CBD areas increasing in the foreseeable future due to the influx of residential developments, more complementary uses of retail, food and beverage and entertainment might prove to be sustainable on weekends and after hours,' he added.