Real News‎ > ‎2012‎ > ‎September 2012‎ > ‎

06 September 2012

6th September, Thursday




URA to launch tenders for 2 Reserve List sites

Source: Today

The Urban Redevelopment Authority (URA) said on Wednesday that it has accepted applications from developers to put up the residential site at Jalan Jurong Kechil and the hotel site at Jurong Town Hall Road for sale by public tender.

The 109,478-sq-ft site at Jalan Jurong Kechil was released for sale after a developer committed to bidding at least S$23.96 million, or about S$156 psf ppr, on a 60-year lease term in the tender for the land parcel.

The site has a gross floor area of 153,267 sq ft with a lease option of 30 years, 45 years or 60 years. This short-term lease site is zoned for residential development and can be developed into a condominium or flat. The successful tenderer has the flexibility to develop the site for retirement housing.

Mr Lee Sze Teck, Senior Manager of Training, Research and Consultancy at Dennis Wee Group, estimates the top bid to range between S$200 and S$250 psf ppr, the breakeven to be between S$450 and S$500 psf and the sale price to be between S$550 and S$600 psf.

Meanwhile, the 99-year leasehold land parcel at Jurong Town Hall Road has a site area of about 97,166 sq ft and a potential gross floor area of 204,051 sq ft. A developer has committed to bid at least S$101.99 million for the site.

"The parcels of land along Jurong Town Hall Road and Jurong Gateway are zoned commercial. If all these are developed, there will be a critical mass of businesses operating in Jurong East," said Mr Lee.

"The successful bidder for the site is likely to build a 4-star 700-room business hotel to cater to the growing commercial hub at Jurong East. Based on these assumptions, the estimated top bid for the site could be between S$650 and S$700 psf ppr while the breakeven price is between S$1,050 and S$1,100 psf," he added.

URA will launch the public tender for the sites in about two weeks.


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The Pines club may be redeveloped next year

Source: The Straits Times

Well-known country club The Pines may be redeveloped as early as next year. And in two to three years' time, a condominium could rise up in its place, with the club's facilities integrated on site, analysts said.

Club operations will cease by the end of next year.

As an interim measure, members will be offered places at the Laguna National Golf and Country Club in Changi.

Analysts said that with the club's location, the "highest value for the plot would be for a residential or a mixed development".

The Pines Club, formerly known as The Pinetree Club, was sold to motoring tycoon, Peter Kwee in 2002 for about $100 million. The former owner, Mr Chng Heng Tiu, had defaulted on a debt for which the property was collateral.


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Bids likely to dip for small suburban en bloc sites

Source: The Straits Times

Developers eyeing collective sale sites might have to redo their sums as the Government caps the number of homes that can be built in non-landed developments outside the central area.

Experts say the newly announced guidelines that discourage the fast-rising number of tiny "shoebox" homes will likely temper developers' bids, particularly for certain small suburban collective sale sites.

The experts add that smaller collective sale land plots are likely to be the most affected by this change as small and mid-sized developers often churn out more units on such sites to claw back the land cost.

An analyst said that owners will have to moderate their expectations by up to 5 per cent.

Another analyst said that sites that do not have a gross plot ratio (GPR) of 1.4 and with a gross floor area of 30,000 sq ft to 80,000 sq ft will likely be the most affected.

But experts point out that the impact of the rules has also been muted by an earlier change in guidelines last November that sounded a warning that the Government was closely watching the shoebox segment.

New rules then had set minimum plot sizes for apartment blocks and restricted the number of units that can be built on certain sites, ensuring that some ground will be free for landscaping or facilities.

URA has also been stricter in granting provisional permission. It has been known to throw back building plans with too many shoebox units, sending a signal to the industry that changes were at hand, an expert added.


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IMM mall undergoing $30m renovation

Source: The Straits Times

The IMM mall in Jurong is undergoing a $30 million year-long renovation that will turn it into Singapore's largest outlet centre, where brand-name items can be had at a discount.

The works, including reconfiguring units, started in May and are being carried out in phases so shoppers can still patronise it. It is expected to be completed by the middle of next year.

It will eventually host 40 to 50 of what are termed "outlet stores" from the 15 now. These shops sell items from popular brands for less and typically carry past-season items at lower prices.

New brands coming on board include Billabong, adidas, Converse, ECCO, City Chain and Premier Football Outlet. These are in addition to the current ones such as Esprit, Timberland, Picket & Rail and Samsonite.

The 20-year-old mall's anchor tenants include Giant, Daiso and Best Denki, which have been there for several years. There will also be some non-outlet stores.

The upgraded mall will offer plenty of choice to Jurong East residents, what with the new JCube mall nearby and the upcoming Jem and Westgate centres. It is also across the road from the Ng Teng Fong General Hospital, which is under construction.


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