Two residential sites in Canberra Drive up for sale, Latest Business News - The New Paper

Two residential sites in Canberra Drive up for sale

This article is more than 12 months old

Two adjacent residential sites in Canberra Drive with 99-year leases have been put up for sale.

The plots could yield up to 675 units, the Urban Redevelopment Authority said yesterday.

Parcel A spans 13,315.3 sq m with a maximum gross floor area (GFA) of 18,642 sq m.

It can accommodate about 220 units, with a maximum building height of 35m to 40m or five storeys, whichever is lower.

Parcel B is on a 27,566.1 sq m site with a GFA of 38,593 sq m. It can yield about 455 units.

The sites are connected to Sembawang Road and Seletar Expressway and are within walking distance from the recently opened Canberra MRT station on the North South Line.

Nearby amenities include Sembawang Shopping Centre and Sun Plaza, while Sembawang Primary School is also in the area.

The two sites were put on the Government Land Sales reserve list for the first half of this year as a single 4.09ha plot.

Splitting the large plot into two will make them more attractive to a wider range of developers, noted Ms Tricia Song, Colliers International head of research for Singapore.

"However, it would be interesting to see how the two tenders pan out, seeing that both sites are launched for sale at the same time," she said.

"Typically, developers would prefer to have more control and less competition - would this then see them bid for both Parcel A and B so that they can better defend prices when the units are put on the market?"

Units in nearby comparable private projects such as Eight Courtyards (launched in 2014) and Canberra Residences (released in 2013) have sold for $900 to $1,000 per square foot (psf) this year, said Ms Song.

"With the Canberra MRT station operational since Nov 2, we expect Parcel A and B to fetch top bids of $135 million and $280 million respectively, which works out to a land rate of $670 psf ppr. Developers could look to sell at an average price of $1,250 psf, she added.

The tender for both sites closes at noon on March 3. The closing will be batched with a Fernvale Lane EC site, due to be launched for sale next month. - THE STRAITS TIMES