URA envisions the site as a distinctive development and identity marker for the Beauty World precinct. Photo: URA
The Urban Redevelopment Authority (URA) on Tuesday (30 June) launched a concept and price revenue tender for a commercial and residential site at Jalan Anak Bukit under the Government Land Sales (GLS) programme for H1 2020.
Situated within the Beauty World precinct, the 3.22ha site can potentially yield around 845 residential units, which could be in the form of flats or serviced apartments or a combination of both.
The site has a maximum permissible gross floor area (GFA) of 96,551 sq m, of which 5,000 sq m should be used for bus interchange and includes a minimum GFA of 400 sq m for shop and restaurant use.
A maximum GFA of 20,000 sq m can also be used for commercial uses, of which a maximum GFA of 7,500 sq m can be set aside for shop and restaurant use. The remaining space is set aside for residential use.
URA envisions the site as a distinctive development and identity marker for the Beauty World precinct.
It should feature “a lushly landscaped and attractive living environment that is well connected to the surrounding nature attractions” as well as a “thoughtfully-designed public spaces and pedestrian networks that are well integrated with transport and community uses”, said URA.
It expects the mixed-use integrated transport hub to inject vibrancy into the area, further spur the rejuvenation of Beauty World and enhance the overall commuting experience with convenient connection between Downtown Line and bus services.
As such, URA adopted a Concept and Price Revenue Tender for the site, in which bidders are required to separately submit their concept proposals and tender prices.
The concept proposals will be evaluated first against a set of criteria specified in the tender. In the second stage, the shortlisted concept proposals will be evaluated based on price only.
In view of the COVID-19 situation, URA offered developers a longer tender period of nine months for the site. The tender for the 99-year leasehold site closes on 30 March 2021.
Tricia Song, Head of Research for Singapore at Colliers International said the site “has good potential for place-making, to capitalise on the mainly private residential catchment, education institutions, and the vast nature elements including Bukit Timah Hill in the vicinity”.
Since it has the potential to become an iconic landmark and would require substantial investment, she expects interest to come from larger and experienced developers.
“They are likely to form partnerships to amalgamate strengths and diversify risks. We expect buoyant interest, with at least seven to 10 concept proposals, and land bids to be $1.1 to $1.3 billion or $1,050 to $1,250 per sq ft per plot ratio (psf ppr),” she added.
PropNex Research, on the other hand, expects bidding for the site to be cautious.
The site could attract five to seven bids, possibly from larger developers or a consortium of developers, with the top bid coming in at about $780 million to $894 million, or about $750 to $860 psf ppr.
PropNex Research noted that the site is the latest GLS site to be launched within the area. It follows the Jalan Jurong Kechil site which was awarded for $215 million in September 2018 and the Toh Tuck Road site that was awarded for $265 million in April 2017.
“In assessing the Jalan Anak Bukit site, prospective bidders would likely consider the sales performance of new projects in the area (based on Realis data as at 29 June): Daintree Residence which has sold 40% of 327 units at a median price of $1,685 psf since its launch in July 2018; Mayfair Gardens which has moved 77% of 215 units at a median price of $2,025 since it was launched in September 2018; and Mayfair Modern which was put on the market in April 2019 and sold about 42% of 171 units at a median price of $1,932 psf,” said Wong Siew Ying, Head of Research and Content at PropNex.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email firstname.lastname@example.org