The tender for a residential site at Upper Changi Road North/Flora Drive closed yesterday on a more subdued note compared to other recent tenders.
The 3.07-hectare land parcel, which can yield up to 390 apartments, drew a total of six bids, with a top bid of $148.3 million or $321 psf ppr coming from Tripartite Developers, a unit of Hong Leong Group.
Following close behind was a tie-up between Orchard Parade Holdings and Far East Organization, with a bid of $143.2 million or $310 psf ppr.
Frasers Centrepoint submitted the third highest bid, $140 million or $303 psf ppr. Other developers which placed their bids as well were Ho Bee, Sim Lian, and BBR-Tagore, which submitted the lowest bid of $91 million.
The top bids for the 99-year leasehold site were towards the lower end of consultants’ projections at $300 psf ppr to $400 psf ppr. The distance of the site from an MRT station is considered to be a factor.
Ms. Chua Chor Hoon, research head of DTZ in South-east Asia, stressed that the large supply of state land may also have dampened competition. With more government land sale sites released recently, property developers have more choice and could be “slightly more comfortable”.
In March, the tender for a residential site at Tampines Avenue 1/Avenue 10 closed with eight developers bidding in the fray. Sim Lian offered the highest bid of $302 million or $421 psf ppr.
In the latest tender for the Upper Changi Road North site, the top bid made by Hong Leong Group is likely to translate to a breakeven cost of $650 psf to $700 psf, said Mr. Ho Eng Joo, investment sales executive director of Colliers International. The selling price could range from $750 psf to $800 psf.
Mr. Ho added that Hong Leong is familiar with the Pasir Ris area. It is behind seven other projects in the vicinity with names from A to G, like Edelweiss Park, Ferraria Park and The Gale.
At The Gale – a freehold development – units went for $743 psf to $833 psf this month, going by caveats lodged.
Property developers hoping for a project in the Pasir Ris area can turn to another site on the Reserve List. HDB has made a 99-year residential site at the junction of Pasir Ris Drive 3 and Pasir Ris Drive 4 available for application starting today.
The two-hectare site, which is under the Reserve List, can yield about 380 units. It is near Downtown East and Pasir Ris Park, and is surrounded by other parcels of state residential land.