Residential site in Margaret Drive triggered for tender

A choice city-fringe residential site in Margaret Drive, close to Commonwealth MRT station, will soon be put up for tender.

Experts expect keen interest in the 0.48ha site, which could yield 275 condominium units.

The move comes after the Urban Redevelopment Authority (URA) said yesterday that a developer has committed to bid at least $185.758 million for the 99-year leasehold plot on its reserve list.

Under the reserve list system, a site will be put up for tender only if a developer’s minimum bid price is acceptable to the Government.

The plot has a maximum gross floor area of 22,195 sq m, and is close to amenities, including Queensway Shopping Centre, Ikea Alexandra and hotel and retail development Alexandra Central.

Analysts told The Straits Times that the site is likely to receive keen interest from developers owing to its relatively central location.

PropNex Realty chief executive Ismail Gafoor said: “We expect bids to come in at between $780 and $880 per sq ft per plot ratio (psf ppr), with possibly six to eight bidders contesting.”

OrangeTee expects six to 12 bids and believes the winning bid is likely to be from $790 to $840 psf ppr.

“Developers would have to take into consideration the ample number of unsold inventory and potential future competition in this region,” said OrangeTee head of research and consultancy Wong Xian Yang.

One upcoming launch in the area is Queens Peak. Another project in Alexandra View is expected to hit the market next year.

“The…land parcel on which Queens Peak sits was sold in June 2015 at $871 psf ppr. This price level will be heavily used as a reference by developers interested in the subject site,” said SLP International Property Consultants executive director Nicholas Mak. He expects the top bid to range from $858 to $912 psf ppr, with seven to 12 bids.

The URA said the public tender for the Margaret Drive site will be launched in one to two weeks.