URA Gives Sales Details For 2 Reserve List Sites

Source : The Business Times, November 20, 2008

Dakota Crescent plot is for residential project, Seletar Rd site for mixed development

The Urban Redevelopment Authority (URA) has released sales details for two Reserve List sites - at Dakota Crescent and Seletar Road.

The Dakota Crescent plot is for a residential development. The Seletar Road site is for a mixed commercial and residential development.

The 1.7 ha Dakota Crescent plot is near the future Singapore Sports Hub and the Dakota Crescent MRT station, which is under construction.

The 2.1 ha Seletar Road site is within the established residential area at Seletar Hills and near the future Seletar Aerospace Park.

Knight Frank expects that at today's auction the Dakota Crescent site could fetch bids of $170-$200 per square foot per plot ratio (psf ppr) and the Seletar Road could see interest at $120-$150 psf ppr.

But Knight Frank's head of research and consultancy Nicholas Mak said: 'Even with the favourable location, the probability that developers will trigger the Dakota Crescent site for tender is slim.

If triggered and launched for sale, it is expected that the launch price for the proposed development will be $650-$680 psf.'

Mr Mak reckons there will be limited interest in the Seletar Road site. 'Developers are generally very cautious and are seeking well-located sites with significant growth potential,' he said.

A nearby comparable for the proposed development is Seletar Springs Condominium. Mr Mak believes the average selling price for new units in a future condominium could be $530-$570 psf if launched in 2009 or later.

Several Government Land Sale sites have not been awarded this year, reflecting poor market sentiment. Sites at Tampines Avenue 1/Avenue 10, Ten Mile Junction and Westwood Avenue were not awarded because bids were too low. More recently, an executive condominium site in Punggol failed to attract a single bid.

DTZ Research senior director Chua Chor Hoon said: 'The property market has worsened a lot more since the Lehman Brothers' collapse. It is unlikely there would be any trigger for these sites until sentiment improves and the tight credit situation eases.'

Savills Singapore director of marketing and business development Ku Swee Yong said he does not expect to see any site triggered until Q2 2009 when the global credit crunch could start to ease.

'Developers who are still keen would need to be backed up by banks with credit for the land, and then the projected construction cost,' he said.