Prime State Sites In Toa Payoh, Alexandra For Sale

Source : The Straits Times, 30 Aug 2007

TWO prime state sites - an Alexandra Road residential plot and a commercial one in Toa Payoh - are now available for sale.

The Alexandra site is a 99-year leasehold plot near Tanglin View, Tanglin Regency and the upcoming Metropolitan just a stone’s throw away from the Redhill MRT station.

The site area is 0.86ha and has a maximum gross floor area of 451,428 sq ft. With these dimensions, a condominium 40 storeys high with 360 to 400 homes can be developed on the site.

The Urban Redevelopment Authority is marketing the site, which is on the Government’s reserve list.

It will go to tender once a developer commits to an acceptable bid.

Analysts agree that the site is a prime one but have given wide-ranging estimates on how much it will fetch.

Mr Nicholas Mak, director of consultancy and research at Knight Frank, expects a top bid of $375 to $400 per sq ft per plot ratio (psf ppr).

CB Richard Ellis executive director Li Hiaw Ho, however, tips it at $650 to $750 psf ppr, while Jones Lang LaSalle’s regional director and head of investments, Mr Lui Seng Fatt, forecasts a bullish $1,000 psf ppr or more. That values the plot at $451 million.

Mr Li likened the condo that could be built on the site to the one going up next door - the 99-year leasehold Metropolitan, which drew long queues when it was launched.

‘We expect the new project to be popular among prospective home buyers. Investors will be attracted to this project, too, as apartments in the locality are popular among tenants,’ he said.

Mr Li expects the condo units to each sell for an average price of $1,200 psf to $1,300 psf.

The Toa Payoh commercial land, meanwhile, is a 99-year leasehold site in Lorong 6 with an area of about 0.14ha.

It can take up to 45,105 sq ft of built-up space comprising retail, food and beverage, office and entertainment outlets.

The tender, which is being handled by the Housing Board, closes on Oct 16.

Mr Lui of Jones Lang LaSalle estimated that the site could yield about 30,000 sq ft of lettable space and would fetch at least $70 million in the tender.

The small site near the bustling HDB Hub can accommodate a three- to four-storey development suitable for retail or food outlets serving the mature housing estate and offices nearby, he said.