A residential site at Flora Drive has received a total of eight bids in a public tender that closed yesterday. Realty Consortium Pte Ltd submitted the highest offer at S$163 million (around S$361 psf ppr).
This will “translate to a breakeven cost of about S$680 to S$700 psf,” said Li Hiaw Ho, Executive Director of CBRE Research. “This land price is about 11 percent above the price of the adjacent leasehold site which was sold in May 2011.”
The second highest offer came from Tripartite Developers Pte Ltd at S$147.60 million, while EL Development Pte Ltd and MCL Land Limited were tied in the lowest offer of S$130 million.
Other groups that participated in the tender included Qingjian Realty (South Pacific) Group Pte Ltd (S$147.58 million), Frasers Centrepoint Limited (S$139.98 million), Peak Shines Pte Ltd (S$139.88 million) and Wee Hur Development Pte Ltd (S$135.40 million).
Launched on 25 August 2011, the 99-year leasehold residential site has a total area of 29,949.0 sq m and a maximum permissible gross floor area (GFA) of 41,929 sq m. It is surrounded by various condominiums including Hedges Park, The Gale, Ferraria Park, Edelweiss Park and Dhalia Park.
“Within the neighbourhood, units in The Gale and Ferraria Park were sold at S$900 – S$1,050 psf in the August – September 2011 period. Both of them are freehold projects,” said Li.
“Units in the 99-year leasehold Hedges Park condominium are being marketed at S$800 – S$950 psf since April 2011. To date, about 65 percent of the 501-unit project has been sold. It is likely that units in the new project will be priced at similar levels.”
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