URA Auctions 11 Land Parcels In Sembawang

Source : TODAY, Weekend, March 1, 2008

The Urban Redevelopment Authority (URA) is auctioning 11 land parcels along Sembawang Road/Andrews Avenue as part of its plans for a landed housing estate in the area.

The plots constitute the Phase 2 development of the Sembawang Greenvale project, and can accommodate 90 dwellings, comprising of one bungalow, 16 semi-detached houses and 73 terrace houses. Phase 1 of the project, which consists of 12 plots along the same stretch of road and accommodates 57 dwellings, was fully sold last October.

Property watchers said yesterday’s announcement of the URA tender would likely draw interest from small property developers, contractors and engineering firms, despite projected slower economic growth and a volatile stock market.

“The landed segment is still a very stable market and the sites are targeted at local buyers, especially displaced owners from collective sales. But there is a strong chance that developers will factor in the current market uncertainty, and this will translate into a lower price,” said Mr Donald Han, managing director of Cushman and Wakefield.

Mr Han expects prices to be 5 to 10 per cent lower than those transacted at last year’s auction, which fetched an average $285 per sq foot of land.

Mr Nicholas Mak, director of research and consultancy at Knight Frank, however, is more optimistic. He noted that the median unit price for landed housing in the area had increased 12 per cent in the fourth quarter of last year from the previous three months.

Mr Mak expects prices in Phase 2 to be higher than those of Phase 1, and fetch $320 to $380 psf for terrace plots, $300 to $350 for semi-detached plots, and $200 to $260 for L-shaped bungalow and semi-detached plots.