Written By: Henny Maherah
As Singapore eases out of the circuit breaker, the property market is showing signs of a gradual pickup. The Urban Redevelopment Authority (URA) reported on 28 May 2020 that a second residential site in Tanah Merah Kechil has been put up for sale.
Second Residential Site Identified as Part of Government Land Sales (GLS) Programme
The site is located in Tanah Merah Kechil Link. It is intended to be converted into a mixed residential development, with the first storey reserved for commercial units. It has an area of 8,880sq m and a maximum gross floor area (GFA) of 24,864 sq m.
The Tanah Merah site is one of two residential developments included in the Government Land Sales (GLS) Programme, which aims to chart land development in Singapore for the next 40 to 50 years. This long-term land-use plan plays an important role in balancing Singapore’s limited land use needs. The first GLS site was identified in December 2019, but residential development projects have come to a complete halt due to the economic downturn of the pandemic.
Extension of Tender Period to Encourage Higher BIds
To provide property developers with more time to access the property market before making investment decisions, the tender period for the Tanah Merah residential property has been extended to a total of five months from the previous six to eight weeks. The tender is slated to close at 12 pm on 29 October 2020.
Property Developers Will Likely Continue to Be Cautious
The site could potentially command high value due to its strategic location: approximately 150m away from Tanah Merah MRT Station, with Changi Business Park in close proximity.
Property consultants highlight that the Tanah Merah Kechil Link site has the smallest gross floor area, requiring less capital requirement and posing less financial risk to develop. This factor may boost its demand, obtaining higher or more bids during the tender duration.
Despite the strong development potential of the residential site, it is expected that property developers will continue to practise caution due to higher cost of construction materials and labour along with the uncertain economic outlook.
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Source: Straits Times Singapore