Over 4,000 Units to be built on Tampines Court and Normanton Park after URA Nod
Developers Dash to Acquire Provisional Permission to Develop Their Sites In Order To Get Reprieve from DC Hikes
After acquiring the massive sites of Tampines Court and Normanton Park through en bloc sales tenders, Sim Lian and Kingsford Huray Development have received a nod from Singapore’s Urban Development Authority (URA) to develop 2,225 and 1,882 units respectively.
The go-ahead, which is nevertheless provisional, was given in June 2018, and it adds to several projects allowed in the second quarter of 2018 involving residential projects.
Provisional approval has also been given to Frasers Property for construction of 500 residential units at the Jiak Kim site, formerly known as Zouk site, where they also plan to develop serviced residences.
According to market watchers, the development project by Frasers Property is a combination of apartments for sale, combined with a component of serviced residences, which is a long-term investment meant to generate recurring income for the developer.
Meanwhile, it is expected that more developers are going to hasten seeking for provisional permission to develop the sites they have already acquired, so as to shield themselves from the effect of anticipated development charge hikes in the revisions coming up on September 1st.
Karamjit Singh, senior consultant at JLL, pointed this out as he explained that development charges for non-landed residential property was bound to increase, with the sites in prime districts experiencing the highest percentage hikes.
In fact, this Orchard Boulevard site set a record price in the country’s residential property arena by reaching S$2,910 per square foot per plot ratio.
In Mr. Singh’s view, sites within suburban locations will, very likely, be safe from the impending DC hikes, or the hikes may be modest, especially because these areas were hit by steep hikes in the last two DC revisions.
The second quarter of 2018 has also seen URA grant provisional permission to a number of developers who won state tenders, a good example being Fraser Property who acquired the former Zouk site.
Another developer who won a state tender and has been granted provisional permission is City Developments Ltd (CDL), who plans on developing 718 units within their West Coast Vale site.
Fraser Property received their go-ahead in May.
Some developers of residential properties have also received Temporary Occupation Permits (TOP) within the second quarter of 2018.
Among the fresh TOPs are those for the Le Grove serviced residences that the developer increased to 173 from 97 in a S$30 million redevelopment project and upgrade facilities like the swimming pool, the gym, the lounge, the tennis court and others.
According to a spokeswoman from CDL, there was positive reception as the new development’s occupancy opened in the middle of July this year.
Other properties that have benefitted from TOPs are the Coco Palms condo, which is in Pasir Ris Grove, and also Trilive located along Tampines Road.