It was announced this week by the Housing and Development Board that two residential sites had been released for sale this past Wednesday, which could allow for the accommodation of 1,180 condo units Parc Life Sun Plaza.
The sited were launched as part of a confirmed list for 2015’s first half by the Government Land Sales Programme. The sites are situated at Queenstown’s Dundee Road, Lorong 4 Toa Payoh and Lorong 6 Toa Payoh.
Parc Life New EC Fraser Centrepoint
The combined Toa Payoh site is 12,154.6 square metres and offers 42,541.1 square metres of maximum gross floor space. The site at Dundee Road measures 10,516.1 square metres and has a maximum gross floor space of 51,528.9 square metres. Once these sites for Parc Life Sembawang have been fully developed they will more than likely yield 535 homes for the Toa Payoh site and 645 homes for the Dundee site.
Research manager for Orange Tee, Wong Xian Yang, has shared that between the two site, it is the Toa Payoh site that they are expecting will amass the most interest amongst developers because of its lower price and smaller size giving it a smaller quantum overall. Adding to this is the fact that new launches are lacking in this area as of late. The last GLS site to be launched in this area was back in 2008 and currently is home to the Trevista condo Parc Life.
New Sun Plaza near Parc Life
Because this are has not been tested with primary sales demands post Total Debt Servicing Ratio, Wong has said that they are expecting avid participation from developers. The expected range for winning bids is from $670 to $740 per square foot ppr for Parc Life in Sembawang.
However, Wong has said he is being cautiously optimistic regarding Dundee Road’s bidding participation due to nearby projects having lukewarm performances and the sites rather large overall quantum.
The area’s most recent tender exercise was a site situated on Commonwealth Avenue, which only drew in 3 bids and closed in February of 2013. However, due to the Queenstown site’s smaller overall quantum, it is expected that this time around there will be more bids in Parc Life Sun Plaza.
Sembawang MRT Station Fraser Centrepoint EC
Wong states that they are not expecting the winning bid amount to go past the $500 million mark, which should allow a wider pool of developers to get in on the bidding.
Due to a number of unsold units of the nearby Commonwealth Towers, which to date has 478 units unsold, it is expected that caution will be used with bidding. Wong is expecting a range of $750 to $850 psf ppr for the winning bid.