It could even set a benchmark price in the Dairy Farm locality, an analyst said.
The Government Land Sale (GLS) of a Confirmed List site at Dairy Farm Road is expected to attract hot competition from developers.
Tricia Song, head of research for Singapore, Colliers International said the site’s most attractive attributes are its proximity to the Bukit Timah Nature Reserve and partial unblocked views over the landed residential plots.
The mixed-use site has a minimum gross floor area (GFA) of 500 sqm set aside for a childcare centre.
"With prior written approval, a combination of flats with strata landed houses is allowed. The site is about 800 metres away from the nearest MRT Downtown Line Hillview Station. Setting aside some commercial use to support the growing residential population is timely," Song said.
Tay Huey Ying, JLL head of research and consultancy for Singapore agreed with Song and said the site should see a healthy level of competition from developers due to its attractive attributes that also includes easy access to the PIE, BKE, and KJE.
"But above all else, homes on this land parcel will enjoy good rental demand from expatriates as it is sited just adjacent to the soon-to-be completed international school (i.e. German European School Singapore)," she said.
The total GFA for entire development cannot exceed 41,260 sqm, with a cap of 4,000 sqm for commercial uses comprising: a supermarket for 1,000 sqm, a food court for 500 sqm, and shops and/or restaurants for 2,500 sqm.
In Tay's view, there is potential for this land parcel to set a benchmark price for GLS land parcels in the Dairy Farm/Bukit Panjang/Hillview/Bukit Batok locality.
Song added that this is the first GLS site to be released for sale in the Dairy Farm area since the site of The Skywoods which was tendered at $616 psf ppr in September 2012.
The Skywoods, which received its TOP in 2016, only one unit has changed hands since Jan 2017. A 1,345 sqft resale unit in the development was sold for $1,301 psf in April 2018, Tay added.
"Units in the 99-year leasehold The Hillier (part of a residential and commercial development with HillV2 as the retail component), which also received its TOP in 2016, changed hands at an average price of $1,375 psf in 2018," Tay said.
"Nearby projects Tree House (completed in 2013), Foresque Residences (2014), Eco Sanctuary (2016), and The Skywoods (2016) are currently transacting at $1,000-$1,300 psf. We expect the top bid for the site to come in at $390m-$420m (or $880-$950 psf ppr)," Song added.
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