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THE taxman is understood to have put two adjoining plots of land adding up to 7,565 sq ft at Sixth Avenue up for auction.

The freehold plots - next to the Avenue Park condominium being developed by Keppel Land and Singapore Land - are expected to fetch a combined price of about $2.8 million to $3 million, market watchers say. This represents $370 to $396 per square foot (psf) of land area. Both plots are registered under the same owner, who is understood to have defaulted on property tax payments. The Inland Revenue Authority of Singapore (IRAS) takes possession of property and puts it up for sale as a last resort to recover property tax.

The Sixth Avenue site is vacant and can be redeveloped into a pair of semi-detached houses, a bungalow or possibly three terrace homes.

The property will be auctioned by Colliers International at 2.30 pm on Sept 27 at the Amara Hotel.

Last year, BT reported that two properties were put under the hammer by the taxman.

One was a 56,355 sq ft freehold site at Yio Chu Kang, sold to Novelty Group for $12.6 million or $224 psf at an auction in May 2005. The other, sold at the same auction, was a 999-year leasehold three bedroom apartment at 81A Lorong K Telok Kurau, which fetched $800,000.

Market watchers do not expect KepLand and SingLand to buy the Sixth Avenue sites with a view to amalgamating them with their existing Avenue Park plot, since the latter has a regular shape.

The duo are planning to redevelop their 172,821 sq ft freehold site into a 193-unit condo that is expected to be launched in the first half of next year.