Tag Archives: Marina View

Analysts expect two commercial sites to be triggered for tender in 2015

With the Government cutting the supply of commercial space, analysts said they expect two commercial sites to be triggered for tender next year. They have been placed for sale on the Reserve List under the Government Land Sales (GLS) Programme for first half of 2015.

The two sites comprise the mixed-use site at Woodlands Square and a white site located at Marina View/Union Street.

Under the Reserve List system, a site will only be put up for tender if the minimum bid price submitted by the interested party is acceptable to the Government. There are no commercial sites on the Confirmed List for the first half of 2015 under the GLS.

Sites included in the GLS for the first half of 2015 could potentially yield 265,130 square metres of commercial space – a cut of 25 per cent from the previous exercise.

All four sites were placed on the Reserve List, suggesting that the Government is monitoring the supply pipeline.

The supply of office space has been limited this year and will likely remain so next year. But analysts expect over three million square feet of office space to come on-stream between 2016 and 2018.

The four sites with commercial component under the upcoming GLS are located at Holland Road, Beach Road, Woodlands Square and Marina View/Union Street.

WOODLANDS SQUARE SITE COULD BE TRIGGERED FIRST

Consultancy Colliers International said that of the four, the mixed-development site at Woodlands Square could be the first to be triggered for sale, and it could help spur the development of the Woodlands Regional Centre, which is relatively under-developed compared to other regional hubs like Tampines and Jurong East.

According to the Urban Redevelopment Authority (URA), the plot could yield 285 residential units and 60,030 square metres of commercial space.

Ms Chia Siew Chuin, director of research and advisory at Colliers International, said: “The site in Woodlands is likely to be triggered first, given the growth potential for the area and because it is more likely to be a straight forward open tender system should it be triggered.”

“The Holland site is likely going to be more complicated because of the concept and price tender system, where the concept comes first, then the price. The development would have to be in line with the vision the Government has for the district as a whole,” she added.

The mixed-development site at Holland Road was moved from the Confirmed List to the Reserve List for the upcoming GLS to give developers more time to study the site and tender evaluation criteria.

MARINA BAY SITE EXPECTED TO ATTRACT INTEREST

Meanwhile, market watchers CBRE and Barclays expect the site at Marina Bay to also attract interest.

Mr Desmond Sim, head of research for Southeast Asia at CBRE Research, said: “This site is definitely on the wishlist or trigger list for quite a few developers, but I think the market is holding back.

“There may be more confidence now because … before the first half list came out, some of the market watchers were afraid that if they trigger it before the list came out, then there may be a better site in Marina Bay listed.”

In a report issued on Monday (Dec 8), Barclays added that the tight supply should be positive for CBD prime office Real Estate Investment Trusts.

Given the supply situation, analysts said they expect office rentals to have risen by more than 10 per cent this year.

http://www.channelnewsasia.com/news/singapore/analysts-expect-two/1520594.html

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H2 GLS to speed up development in Holland V and Paya Lebar among others.

In today Business Times (11 June), it was reported that even as the government adopted a cautious approach to private housing in the latest land sales programme for H2 2014 to account for the twin factors of oversupply and weaker demand, the new sites rolled out yesterday stirred excitement in the market,

The new sites were rolled out under both confirmed and reserve lists in the residential and commercial property sectors.

In particular, the strategy to accelerate the development of various growth areas as identified in the latest land-use master plan is made clear in the latest slate. For instance, the Urban Redevelopment Authority (URA) will launch the tender for a much-awaited commercial and residential development site in Holland Village in December. “The sale of the site will further enhance the existing urban village character of the area,” said the Ministry of National Development (MND). The 2.31-hectare site is estimated to yield about 580 private residences in addition to 13,500 sq m GFA of commercial space. It is being placed on the H2 confirmed list as part of the Holland Village Extension plan unveiled in Master Plan 2014. It will provide new housing options within a mixed-use development that is well connected via pedestrian linkages to surrounding transport nodes and public spaces. An existing car park that will be part of the sale site will be shut by the first half of next year to facilitate development of the sale site. Future development on the site will provide parking lots to meet the demand in the area. In the meantime, an interim car park will be built to replace the public parking lots affected.

In addition, URA has enlarged a commercial site next to Paya Lebar MRT Station and moved it up from the reserve list to the confirmed list, reflecting its commitment to drive the growth of Paya Lebar as a regional commercial hub. Elaborating on the enlarged 3.98-hectare commercial site in Paya Lebar, MND said yesterday that the site comprises a plot that was on the H1 reserve list and another plot immediately south of Paya Lebar East-West Line MRT Station.

The two plots of land will be connected via a subterranean space under Sims Avenue. The sale of the larger land parcel provides greater flexibility for building design, layout and placement of uses. It will also facilitate the development of Paya Lebar Central into a commercial node, which is in line with the government’s objective of decentralising employment centres and bringing jobs closer to homes.

The earlier plot has a drain running diagonally across it, severely constraining any potential design scheme. While the additional plot to its north also has a drain running through it, the drain divides the plot into two more regular-shaped rectangular plots, which would allow a developer to put a tower on each half. Market watchers reckon that besides a minimum office component, the enlarged sale site is likely to have retail and residential elements, and possibly hotel uses too. The enlarged Paya Lebar site can generate about 167,160 square metres (nearly 1.8 million sq ft) gross floor area (GFA), compared with 86,940 sq m for the old plot. This will limit participation at its tender to big players, say market watchers.

With the focus on decentralisation, two sites for office developments in the city – a commercial site on Beach Road and a “white” site in Marina View – will take a “back seat on the reserve list. The 2.14-ha Beach Road plot, a new site that includes the former Central Police Station grounds, can generate 89,880 sq m GFA of commercial space. Meanwihile the Marina View plot, which can produce about 101,400 sq m GFA, has been on the reserve list for more than two years, though MND yesterday announced a new sale condition: banning strata subdivision of office space for the future project on the site. This is in line with the vision for quality office developments within Marina Bay, Singapore’s key financial and business district.

See: http://www.businesstimes.com.sg/premium/top-stories/push-speed-development-new-sites-released-20140611