The two residential sites were offered for auction under the Reserve List of the 2H2021 Government Land Sales (GLS) programme. There are two adjoining sites located at Pine Grove Parcel A and Parcel B which are located just off Ulu Pandan Road and Pandan Valley.
A unique condition that is attached to construction on these parcels of land is that maximum of 520 housing units could be constructed in Parcel A as well as 565 homes on Parcel B according to Tricia Song. Song is CBRE director of research and analysis for Southeast Asia. This is to handle the possible traffic flow caused by the growing population once new developments for residential development on the two sites will be completed in the near future she states.
Belgravia Ace e brochure where you can see the houses are planned to give enough spaces that families need.
“This regulation could be an effective in encouraging developers to build larger families-sized houses, for example, ones that have more than three bedrooms,” notes Song. “Afterall, Pine Grove is an established residential zone near Clementi HDB.” Clementi HDB residential estate. The development of a condominium in the future located at Pine Grove could cater to the HDB upgraders’ housing needs. The majority of HDB upgraders with kids would require homes with at least three bedrooms.”
At Parcel A Based on the land size of 242,561 sq . ft. with a maximum gross floor (GFA) in the range of 509,380 sq feet and five hundred units The average size of the development is 980 sq feet. Parcel B is the site size of 269,519 square feet and an area of GFA 565,987 feet. The development has 565 housing units means that the average size of each dwelling will measure 1,002 square feet.
The sites are thought to be huge, because they can develop into a brand new project that has over 500 homes, according to Nicholas Mak, head of research and consulting of ERA Realty. “The most suitable site to developers is sites which yield between 200 and 500 units per unit,” says Mak. “Such sites would be big enough to allow the developer to benefit from some economies of scale but not large enough to take on the possibility of sudden changes in the market or a fresh round of federal intervention.”
Although they aren’t near an MRT station However, the sites might still attract developers CBRE’s Song. She highlights the appealing dimensions of each parcel as well as the their popularity in the residential enclaves in the midst of diminishing inventories of unsold inventory by developers. Its main drawbacks include the proximity of 1km to Henry Park primary school and Pei Tong Primary School, only a short drive away from the hub of lifestyle Holland Village and one-north precinct and significant tertiary schools like Ngee Ann Polytechnic, National University of Singapore (NUS) and School of Science and Technology Singapore She mentions. “They also provide an area for rental,” she adds.
Due to the size of the land and the size of the minimum unit and the affordability issues and affordability, tenders will likely be less sluggish when compared to the tenders that were recently offered for the land parcels of Slim Barracks Parcel A and B in which the sites were smaller and the two sites together producing a total of 400 units, compared with more than 1,100 units in the two parcels of land at Pine Grove.
The top bids for the sites located at Slim Barracks were $1,210 psf in ppr, and $1,246 for psf according to Song. She anticipates developers to be considering selling prices of $1,900 to $2,000 per square foot on those Pine Grove sites, and this would mean an average land price of between $1,000 and $1100 psf per acre price range.
The ERA’s Mak believes that the sites could fetch anywhere between $920 psf ppr psf and 1,000 psf per psf. This is equivalent to $468-$510 millions for parcel A with Parcel B would be in between $520 and $566 million range.
CBRE’s Song refers to condominium developments within the area including that 99-year leasehold Pine Grove, Astor Green as well as Cavendish Park that were constructed in the late 1980s and early 1990s and are currently trading at $969 to $1,250 per sq ft until 2021. However, Quinterra, completed in 2009, is currently trading at $1,462 psf for the year.
Lee Sze Teck, senior director of research at Huttons Asia, believes the probabilities of these two sites being affected are “not very high”. He adds: “There are better sites in the Confirmed List like Jalan Tembusu and upcoming en bloc sites which will satisfy developers’ need for land. There are likely to be many more sites in the 1H2022 GLS program, which is expected to be revealed at the end of December.”