URA launches Jalan Anak Bukit site for sale

URA has launched a commercial and residential site at Jalan Anak Bukit for sale, under the Confirmed List of the 1H2020 Government Land Sales (GLS) programme. The 3.22ha site, located within the Beauty World precinct, can potentially yield about 845 residential units. It will have a total gross floor area (GFA) of up to 96,551 sq m (1.039 million sq ft).

Of the space at the site, a minimum GFA of about 5,000 sq m is slated for a bus interchange, which includes a minimum GFA of 400 sq m for shop and restaurant use; while a maximum GFA of 20,000 sq m is planned for commercial use, out of which a maximum GFA of 7,500 sq m can be for shop and restaurant use. The remaining space would be for residential use.

URA envisions the site as a “mixed-use integrated transport hub [that] will further spur the rejuvenation of Beauty World, inject vibrancy into the area, and enhance the overall commuting experience with convenient connection between the Downtown Line and bus services”, it says in a release.

“It should include thoughtfully-designed public spaces and pedestrian networks that are well integrated with transport and community uses” and “offer a lushly landscaped and attractive living environment that is well connected to the surrounding nature attractions”, URA highlights.

In line with this, the Jalan Anak Bukit site is launched under a “Concept and Price Revenue Tender”, where potential buyers will submit their concept proposals and tender prices separately. The concept proposals will first be evaluated against a set of criteria: the quality of design concept, the quality of integration with public amenities, and the track record of the developer and design teams. Next, compelling concept proposals will be shortlisted for the second stage of evaluation, which will be based on price only.

Past mixed-use developments that have been launched under a “Concept and Price Revenue Tender” included a site at Holland Road. The tender closed in March 2018, and the site received a total of 15 concept proposals from 10 consortiums. The site was awarded in May 2018 to a tie-up of Far East Organization, Sekisui House and Sino Group for $1.213 billion, or $1,887.7 psf per plot ratio (psf ppr), observes Tricia Song, head of research for Singapore at Colliers International.

Meanwhile, the tender for a site at Sengkang Central closed in June 2018, and it received a total of seven concept proposals from six bidders. It was awarded in August 2018 to a tie-up between CapitaLand and City Developments, for $777.8 million or $923.6 psf ppr.

The tender for a Pasir Ris Central site closed in December 2018, and received three bids from three potential buyers. It was awarded in March 2019 to a tieup between Allgreen and Kerry Properties for $700 million or $684.5 psf ppr, notes Song.

For the Jalan Anak Bukit site, Song expects larger and more experienced developers to be interested. “We expect buoyant interest, with at least seven to 10 concept proposals, and land bids to [range from] $1.1 billion to 1.3 billion, or $1,050 to $1,250 psf ppr,” she says.

PropNex Research, meanwhile, estimates that the top bid could come in at around $780 million to $894 million, or $750 to $860 psf ppr.

The site at Jalan Anak Bukit is the latest GLS site to be launched in the area, says PropNex. This comes after the Jalan Jurong Kechil site was awarded in September 2018 for $215 million or $1,002 psf ppr, as well as the Toh Tuck Road site which attracted 24 bids and fetched $265 million, or $939 psf ppr, in a tender that was awarded in April 2017.

Consultants believe prospective bidders for the site will consider the sales performance of condo projects in the area. Based on URA data as at June 29, Daintree Residence has sold 40% of 327 units at a median price of $1,685 psf since its launch in July 2018; Mayfair Gardens has moved 77% of 215 units, at a median price of $2,025, since its launch in September 2018; and Mayfair Modern, which launched in April 2019, has sold about 42% of 171 units at a median price of $1,932 psf.

In view of Covid-19, URA will offer a longer tender period of nine months for the site at Jalan Anak Bukit. The tender for the site will close at 12pm on March 30, 2021. E