By Joyce Teo, Property Correspondent

RESPONSE is likely to be tepid for a tender for a transitional office site in Mohamed Sultan Road, given the large supply of space coming onstream in 2010.

The 0.62 ha site has a maximum gross floor area of 9,265 sq m and is being sold on a short-term lease of 15 years with a price tipped at anything from $10 million to $18 million. A block of about four storeys could be built in around a year, said the Urban Redevelopment Authority (URA) yesterday.

Mr Nicholas Mak, Knight Frank's director of consultancy and research, thinks the uncertainty will mean a cautious approach by developers with fewer than five bids likely, including the opportunistic ones. Mr Mak said the land price for the site is expected to come to between $10 million and $13 million, or from $100 to $130 per sq ft (psf) of potential gross floor area. Office rents in the Mohamed Sultan area are now going at $5 psf to $7 psf.

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