As 15 developers submitted their bids for the 99-year-leasehold site located in Avenue 3 in Serangoon, the intense competition for residential lands have not shown any sign of abating.
To date, the number of bids was the highest for government residential land. Each of the last 3 tenders had drawn 12–13 bids.
Yesterday, the tender for the site in Serangoon had been closed by the Urban Redevelopment Authority (URA). The leading bid of $529 per sq ft (psf) of gross floor area (GFA) or $221.2 million came from Hong Leong Holdings’ unit, the Intrepid Investments Private Limited.
With a bid of $468 per sq ft of GFA or $195.9 million, a unit at Far East Organization, the Tuas Hi-Tech Park Private Limited, came in 2nd.
The site’s leading bids clearly surpassed the predictions of the property consultants, who had anticipated the figures to drop closer to $400 to $450 per sq ft of GFA.
Some of the developers who also placed offers for the Serangoon site are Sims Lain Land, Times Properties, Frasers Centre point and Keppel Land.
The lowest bid was from the Lippi Estates with $287 per sq ft of GFA or $120 million. The spread from the highest to lowest bids was approximately 84 percent.
According to Tay Huey Ying, director for research and advisory at Colliers International, the result indicates a very positive market sentiment. She also adds that it likewise reflect the site’s attractiveness.
The site is close to several schools like the Australian International School and is next to Luring Chan MRT Station. The plot is also near to CTE and Serangoon Gardens.
Li Haw Ho, executive director of CB Richard Ellis Research, believes that the breakeven cost of the site will estimate to around $900 to $950 per sq ft. This translates to $1,000 to $1,100 psf selling price.