Knight Frank reveals bidding outlook for 3 new GLS sites

No aggressive bidding for Anchorvale Crescent.

Knight Frank has released its bidding outlook for the 3 new Government Land Sales (GLS) sites, namely Anchorvale Crescent, Canberra Drive and Upper Paya Lebar Road.

The property analyst said in its House View report that Anchorvale Crescent will see "relatively keen interest" of 4-6 bidders with an expected winning bid of $330 to $350 per sq ft ppr considering its location next to a LRT station and close proximity to Sengkang MRT station and Compass Point mall.

"However, we do not expect aggressive bidding for this site as developers could be cautious of the ample upcoming supply of EC units in this area. As at end of October 2013, there are 164 unsold units at the Ecopolitan project, and an estimated 690 units at the Anchorvale Crescent EC site that was bought by Qingjian in May 2013," said Knight Frank.

Meanwhile for the executive condominium at Canberra Drive should see more competitive bidding of around 6 to 10 bidders with an expected winning bid of $320 to $340 per sq ft ppr.

"In contrast to the Northeast region such as Sengkang & Punggol where there are a number of EC land sites being launched under the GLS Programme, planning areas in the North Region such as Sembawang, Yishun and Woodlands have less number of EC sites available for sale," said Knight Frank.

"This subject EC plot is likely to attract potential HDB upgraders who are currently residing in the Sembawang area, or young families looking to start a family in the northern Singapore," it added.

"While the future EC development on this site is envisaged to be well-received, we expect moderately healthy interest for the site due to the release of three other EC sites simultaneously to promote more prudent bidding by developers," it said further.

Lastly for the private residential at Upper Paya Lebar Road, Knight Frank expects around 6 to 8 bidders with an expected winning bid range of $700 to $750 psf ppr.

The site's potential is propped up by its proximity from mega-suburban mall NEX and walking distance from Bartley MRT Station on Circle Line, as well as its near distance to several good schools such as Maris Stella High School (Primary and Secondary), Paya Lebar Methodist Girls’ School (Primary and Secondary) and St. Gabriel’s Secondary. The site is also 2.7 km away from renowned international schools such as the Australian International School.

"However, the irregular land shape of the site and its closeness to the existing MRT Circle Line tracks are less attractive attributes with higher construction costs likely to be incurred by the developer," Knight Frank cautioned.

"There are about 10,500 units of apartments and condominiums under construction or being planned in the Toa Payoh, Serangoon and Hougang Planning Areas, out of which 9,400 units have been sold. Only about 840 units are launched but unsold," it added.

"Given that there have been limited sites available in this locality under the GLS programme and coupled with fairly good location attributes for this site, it is likely that there will be relatively good response from developers," it said further.