2 sites on Canberra Drive have just been launched for sale by tender last week. With the Canberra MRT station now up and running, might there be increased interest in these sites?
99-year leasehold Canberra Drive sites near Canberra MRT station
Both these sites have 99-year leases and were originally placed on the Government Land Sale reserve list in H1 this year as a single 4.09-hectare site. The site has since been split into 2 and both placed on the confirmed list. The first land parcel spans 13,315.3 sq m and has a maximum gross floor area (GFA) of 18,642 sq m. The second site measures at 27,566.1 sq m and has a GFA of 38,593 sq m. Combined, both sites can yield up to 675 units – 220 units in the first site and 455 units in the second. With the division of the previous singular site on the reserved list, the 2 separate sites are now of more palatable sizes and could prove to be more attractive to developers.
Connectivity would be one of the top-selling points for these sites, with their proximity to not only the MRT station but also to the Seletar Expressway and Sembawang Road. The newly-opened Canberra MRT station is within walking distance of both sites and there are also a number of amenities nearby including shopping malls such as Sembawang Shopping Centre and Sun Plaza, and schools such as Sembawang Primary School.
Sites expected to go for $135 million and $280 million
Analysts are expecting a fair amount of competition for the 2 sites which are adjacent to each other. There are even some predictions that developers may even bid for both sites in order to have less competition in future. As a comparison, private residential properties nearby such as Eight Courtyards and Canberra Residences have sold for $900 psf to $1,000 psf this year. Last month, an executive condominium (EC) site in Canberra Link was sold for $233.89 million to MCC Land.
The estimated sale prices of both sites are $135 million and $280 million, which works out to a land rate of $670 psf ppr. Developers may be able to then sell the new units at an average price of $1,250 psf.
See more: KH Kea Building sold for S$79.3 million