URA launches tender for Clementi Ave 1 residential site

The URA has launched a public tender for a 99-year residential site at Clementi Avenue 1, under the Confirmed List of the first half 2019 Government Land Sales (H1 2019 GLS) Programme.
Dated: 01-Mar-2019

A public tender is under way for a 99-year residential site in Clementi Avenue 1 under the Confirmed List of the Government Land Sales (GLS) programme.

The site has a permissible gross floor area (GFA) of 57, 900 sq m on 16, 542.7 sq m of land, which works out to a gross plot ratio of about 3.5 times.

The maximum building height is 140m and the project completion period is 60 months.

The tender closes at noon on July 3 and is batched with an HDB executive condominium site at Canberra Link to be launched for sale in May under the GLS programme.

Up to 640 residential units could be built on the Clementi site, the Urban Redevelopment Authority said yesterday, including condominiums, flats or a combination of flats and strata landed houses, but serviced apartments will not be allowed.

The successful tenderer must also provide a childcare centre within the development with a minimum GFA of 700 sq m.

Mr Nicholas Mak, head of research and consultancy at ZACD Group, noted that the four-month tender period is one of the longest for a typically normal residential land GLS tender.

"By batching the tender closing dates, the Government is probably trying to moderate the land bidding prices, as most developers would not be able to bid aggressively for every site, " he said.

However, this may not result in lower land prices, as developers could still submit very high tender bids for the sites that most appeal to them, he said.

Ms Tricia Song, head of research for Singapore at Colliers International, said the Clementi site could potentially attract four to six bids - fewer than the seven bids for the Kampong Java private residential site that closed in January - because this site is relatively larger.

"We estimate the top bid could potentially come in at $520 million or $830 per square foot per plot ratio (psf ppr). This could put the potential average selling price at $1, 400 psf, " she said.

Source: Straits Times