A 99-year leasehold residential site at Boon Lay Way and Lakeside Drive has received an eye-popping bid of $302.98 million through a public tender.
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Keppel Land Mayfair, a unit of Mainboard-listed Keppel Land, has submitted the highest bid for the 1.6-hectare land parcel, which can yield up to 525 residential units.
The latest tender was a little higher than the $302-million bid of Sim Lian Land for the 3.2-hectare land site at Tampines Avenue 1 and Tampines Avenue 10 two months ago.
URA said it has received 14 bids for the Boon Lay tender, which was closed on Tuesday, compared to the eight bids for the Tampines Avenue 1/Avenue 10 site.
The next highest bid for the 56,411-sq-m land site was submitted by MCC Land at $263 million, while the lowest bid came from Cove Residential at $165.8 million. The site was launched for public tender on March 23.
Mr. Li Hiaw Ho, executive director of CBRE Research, said the land parcel attracted many developers due to its location, which is within close proximity to two MRT stations and near Jurong Lake. He added that development for the land site will likely attract employees from the nearby Nanyang Technological University and surrounding industrial centres, as well as upgraders from private and public housing estates within the area.
Mr. Li noted the top bid for the land site, which works out at around $499 psf ppr, will translate to a breakeven price of between $830 psf and $850 psf. "Assuming the residential market continues its present state of activity and growth, the future project on this site could fetch an average price of $900 psf to $950 psf by early next year," he said.
Nicholas Mak, a real estate lecturer from Ngee Ann Polytechnic said that the number of bids for the residential site was high. "This is a surprising high number indicating that developers in Singapore are still very hungry for development sites, especially those that are located near MRT stations."
Mr. Mak added that there are several condominium projects around the site, which could contribute to the supply of resale units in the area. "The developers did not appear to be deterred by this fact. This indicates that they are very confident of the demand for new condominium units in the Boon Lay area," Mr. Mak said.
URA will decide on the winning bidder at a later date.