Orchard Boulevard GLS site deemed attractive
Developers may show restraint when bidding for Orchard Boulevard gls site.
The Singapore Urban Redevelopment Authority (URA) has released a prime site in Orchard Boulevard for sale last Tuesday (Oct 17). The 99 year leasehold site that measures 7031.5 sqm has a gross plot ratio of 3.5. It is zoned for residential use with commercial element on the first floor. The maximum gross floor area will be 24,611 sqm with 500 sqm allocated to the commercial usage.
Market analyst agreed that the site is attractive however believed that the developers will exercise caution when bidding in view of the soft market sentiment.
Out of 5 analysts, 3 said that they predicted that the top bid to be above $1800 per square foot per plot ratio (psf ppr). 2 others said that the highest bid would be between $1378 and $1500psf ppr. All 5 said that there may be between 2 and 5 bidders bidding for this Orchard Boulevard gls.
First land site released in the Orchard area since May 2018
The orchard boulevard gls is the first government land sales since May 2018. This falls under the URA’s confirmed list in the GLS programme for the second half of 2023. The land site is located next to Orchard Boulevard MRT station of the Thomson East Coast Line that just recently opened.
It is also near to a few embassies close to Tanglin mall and Gleneagles Hospital and Camden Medical Centre.
The plot is able to yield an estimate of 280 units. This will also be part of the 5160 residential units to be made available under the confirmed list of the second half of 2023 in the government land sales programme. The supply of new residential homes is the highest in a decade with 9250 units in total.
Property analysts hopes developers would be inclined to target local buyers for this project.
Due to the April cooling measures that also includes the increase in the additional buyer stamp duty rates (ABSD) from 30% to 60%, market watchers hopes that the target buyers to be locals for the project to be well received.
Wong Siew Ying of Propnex Realty’s head of research and content said that local buyers may be more price conscious and have different unit mix requirements compared to the foreigners.
Orange Tee and Tie’s deputy chief executive Justin Quek went on to share that this plot may attract developers who are looking to buy prime district land without going through a collective sales process.
Also the price quantum will be more affordable for the developers due to the small plot size and number of units. The analyst also went on to add that since most luxury new residential projects have the tendency to sell beyond the 5year ABSD remission deadline as developers prefer to hold out to high net worth clients.
The tender for this land site closes on 1st February 2024, same day as the gls land for the executive condominium in Plantation close.