This 24,394.0 m2 site is located amongst private landed enclave and diagonally across the Tanah Merah MRT station. It is easily accessible via major expressways such as the Pan Island Expressway (PIE) and the East Coast Parkway (ECP). A variety of shopping and dining options nearby include Bedok and Simei Town Centres and Changi City Point.
Educational institutions in the vicinity makes the private condo site an ideal development for potential residents with kids of school-going age. The reputable schools are Anglican High School and the Temasek Junior College; and Singapore 4th university – the Singapore University of Technology and Design (SUTD).
Besides enjoying the facilities within the new condo launch, there are also other outdoor recreational facilities nearby. These include the East Coast Park, Laguna National Golf and Country Club, Bedok Reservoir Park and Bedok Swimming Pool.
The 99-year residential new condominium site comes with a maximum permissible Gross Floor Area (GFA) of 51,228 m2 and can yield an estimated 570 apartment units.
The said plot was on the reserve list for second half 2015 government land sale (GLS) and was triggered for public tender on 17 Jan 2016. The minimum tender price for this land parcel is $320 million. It is the minimum bid price committed by a developer who had triggered this site for tender. This means that any tender bid price lower than $580.32 per square foot per plot ratio (psf ppr) will not be considered.
According to property experts and new condo launch prices in the vicinity, the top bid may be in the range of $600 to $750 psf ppr. This works out to estimated breakeven costs of $1100 to $1250 psf respectively.
On 20 Jan 2016, the Urban Redevelopment Authority (URA) had launched this site for tender. Tender closes on 23 Feb 2016.
For comparison, there was an earlier land plot at New Upper Changi Road / Bedok Road (Parcel A) put up for sale. This 99-year private residential sale site of area 31,881.50 m2 called The Glades was awarded to Sherwood Development Pte Ltd (subsidiary of Keppel Land) on 22 October 2012 at a tender price of $434.55 million. It was an aggressive bid amongst 11 developers. With a maximum permissible Gross Floor Area (GFA) of 51,011 m2, the per square foot per plot ratio (psf ppr) is $791.41.
This high bid price came in at a time when market was buoyant. However, in this present subdued market, developers may be cautious.
Cautious as they may be, but it is a fact that developers’ land banks are depleting. With this in mind, more reserve land sites may be triggered for tender in the coming months. And also with the first half 2016 GLS supply reduced, competition for land will be more intense, leading to more stable prices in the Singapore property market.