URA tenders residential-with-commercial Bernam Street site
It can yield up to 325 potential units.
The Urban Redevelopment Authority (URA) has launched a residential with commercial at the first storey site at Bernam Street for sale by public tender under the Confirmed List of the H1 2019 Government Land Sales (GLS) Programme.
This site can potentially yield up to 325 residential units with a site area of 3,846.2 sqm and maximum gross floor area of 28,001 sqm. URA has assigned maximum building height for the high-rise zone at 35 storeys, mid-rise zone at 20 storeys, and low-rise zone at four storeys.
Lee Sze Teck, head of research at Huttons Asia, commented, “The launch of the site sits in nicely with the government's plans to bring life back to the CBD after office hours. The site is in a fairly attractive location within minutes walk to Tanjong Pagar MRT station and amenities at 100 AM, Tanjong Pagar Centre and the market/food centre.”
Tricia Song, head of research for Singapore at Colliers International, observed that the maximum gross floor area and in turn the estimated number of units for this site have increased 30% compared to the amount stated earlier in the 1H2019 GLS Programme, due to the increased development intensity allowed under the CBD Incentive Scheme announced in March 2019. “The implied Gross Plot Ratio has increased to 7.28 times, compared to the 5.6 times in the current Master Plan,” she added.
Lee forecasts that the site could see a top bid of between $1,400 and $1,500 psf ppr.
However, Song noted that Realty Centre, the freehold 11,000-sqft site next to the Bernam Street site, was sold in a collective sale in April for $148m. “We estimated this would translate into $1,922 psf ppr, before any development charge, assuming it receives a 25% increase in plot ratio if it converts into a mixed residential and commercial property, which the buyer - The Place Holdings - reportedly intended to do,” she added.
Moreover, the 99-year leasehold residential projects in this area, such as Altez, Skysuites@Anson and Icon transacted at $1,700-2,500 psf on average in the past 12 months, depending on age and unit size. “We expect this Bernam Street site, with a site area of 3,846 sqm or 41,400 sqft, to fetch a top bid of $535m or $1,780 psf ppr. Developers could look to price the new project at an average of $2,600-2,700 psf,” Song said.
The tender for Bernam Street site will close at 12 noon on 5 September 2019.
Meanwhile, the hotel site at Sims Avenue, which was originally scheduled to be released on the Reserve List of the 1H2019 GLS Programme in May 2019, will be removed from the GLS Programme to facilitate a review of the development plans in the area.
Photo from Google street view