The Urban Redevelopment Authority (URA) has released a residential site in Tampines Ave 1/ Avenue 10 for sale by tender.

The site has an area of 3.2 ha and will have a maximum gross floor area of 66,655 sqm. It can yield about 600 housing units. A period of six weeks is allowed for developers to tender. The tender will close on 16 March 2010.

Mr Li Hiaw Ho, Executive Director of CBRE Research commented,” The residential site at Tampines Avenue 1/Avenue 10 is situated immediately next to The Tropica condominium and will enjoy an unblocked view of Bedok Reservoir. Temasek Polytechnic is situated close by. As the site is situated on the northwestern boundary of Tampines Newtown, it is about 5-10 minutes’ drive away from Tampines Central and Tampines MRT station. However, shopping facilities are available at the nearby Tampines Retail Park on Tampines Avenue 10 where Giant, Ikea and Courts are located. Potential upgraders in Tampines and Bedok HDB Estates are likely to be interested in this project.”

He noted that two new projects in Bedok Reservoir Road, Waterfront Waves and Waterfront Key, are currently being marketed at $700 psf and $760 psf respectively. “In the resale market, units in The Tropica, Aquarius By The Park and Baywater were sold between $640 psf and $670 psf in the fourth quarter of 2009. Based on these comparables, we expect that a new 99-year leasehold project in this location may fetch prices around $720-$730 psf. This will translate to a land price of $215 million - $237 million for the site,” he said.