Jalan Anak Bukit site launch by URA expected to be well received by developers
The Urban Redevelopment Authority (URA) on June 30 launched a commercial and residential site at Jalan Anak Bukit for sale by public tender today under the Confirmed List of the first half 2020 (1H2020) Government Land Sales (GLS) Programme. This site, which is located within the Beauty World precinct, can potentially yield about 845 residential units.
Concept and Price Revenue Tender Approach for the Jalan Anak Bukit Site
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Located within one of Singapore’s endearing identity nodes, the Beauty World precinct is envisioned to be a green urban village that will be a centre of community life and southern gateway into Bukit Timah’s nature attractions.
With the completion of the Coast-to-Coast trail, upcoming completion of the Rail Corridor and Rifle Range Nature Park, as well as the new public and private development projects in the area, the sale of this site for a mixed-use integrated transport hub 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.
The rejuvenation plan for Beauty World precinct will be carried out progressively, through both public and private projects, for example the upcoming new Bukit Timah Community Building, as well as The Linq@Beauty World mixed-use development (previously known as Goh and Goh Building).
The vision is for the 3.22 ha Jalan Anak Bukit site to be a distinctive development and identity marker for the Beauty World precinct when completed. It is envisaged to offer a lushly landscaped and attractive living environment that is well connected to the surrounding nature attractions. It should include thoughtfully-designed public spaces and pedestrian networks that are well integrated with transport and community uses.
In line with the vision for the Jalan Anak Bukit site, a Concept and Price Revenue Tender approach is adopted to shortlist quality development concepts that are attractive and respond well to the surrounding context, with meaningful integration of amenities connected through a seamless network of pedestrian-friendly streets and well-designed public spaces.
Under the Concept and Price Revenue Tender approach, tenderers are required to submit their concept proposals and tender prices separately. The concept proposals will first be evaluated against a set of criteria specified in the tender. Only compelling concept proposals will be shortlisted to proceed to the second stage of evaluation, which will be based on price only. Tenderers are encouraged to propose quality concepts that are closely aligned with the planning vision for the site, while submitting a competitively priced bid.
Other Details for the Jalan Anak Bukit site
URA said it will offer a longer tender period of nine months for developers to make their assessment and prepare the tender submission in view of the on-going COVID-19 situation. Tender for this site will close at 12 noon on 30 March 2021.
Analysing the Jalan Anak Bukit site, Colliers International said it has good potential for place-making, to capitalise on the mainly private residential catchment, education institutions, and the vast nature elements including Bukit Timah Hill in the vicinity.
“The retail malls nearby such as Beauty World Plaza, Beauty World Centre and Bukit Timah Shopping Centre are mostly strata-titled and outdated. With the completion of the Coast-to-Coast trail, upcoming completion of the Rail Corridor and Rifle Range Nature Park, as well as the new public and private development projects in the area, the sale of this site for a mixed-use integrated transport hub should help rejuvenate and inject vibrancy into the area.
As it is envisaged to offer a lushly landscaped and attractive living environment that is well connected to the surrounding nature attractions, it is apt that a Concept and Price Revenue Tender approach is adopted to shortlist quality development concepts that are in line with the vision. This would ensure meaningful integration of amenities with a seamless network of pedestrian-friendly streets and well-designed public spaces.
The recent mixed developments that have adopted such Concept and Price Revenue tender approaches include:
- Holland Road tender which closed in March 2018 and received a total of 15 Concept Proposals from 10 consortiums; eventually awarded in May 2018 to the tie-up of Far East Organization, Sekisui House and Sino Group for S$1,887.7psf ppr or S$1,213.3 million.
- Sengkang Central tender which closed in June 2018 and received a total of seven Concept Proposals from six tenderers; eventually awarded in August 2018 to a tie-up between CapitaLand and City Developments, for S$923.6 psf ppr or S$777.8 million.
- Pasir Ris Central tender which closed in December 2018 and received three bids from three tenderers; eventually awarded in March 2019 to the tie-up between Allgreen and Kerry Properties for S$684.5psf ppr or S$700.0 million.
As this site has the potential to be an iconic landmark and requires a substantial investment, we expect larger and experienced developers to be interested. They are likely to form partnerships to amalgamate strengths and diversify risks. We expect buoyant interest, with at least 7 to 10 concept proposals, and land bids to be S$1.1 to 1.3 billion or S$1,050 to 1,250psf ppr.
As the closing date is nine months out on 30 March 2021, sentiment could also improve. Currently, there are ample new residential launches nearby with over 1,000 available units, of which less than half have been sold.
As of end-May 2020, Daintree Residences has sold 108 out of 327 units at an average of S$1,665 psf since its launch in July 2018. View at Kismis has sold 97 out of 186 total units at an average price of S$1,700psf since its launch in July 2019. Mayfair Gardens has sold 166 out of 215 units at an average price of S$1,944 psf since its launch in September 2018. Mayfair Modern has sold 68 out of 171 units at an average price of S$2,015 since its launch in April 2019.
Verdale, at Jalan Jurong Kechil, with 258 units, is yet to be launched.”