The tender for a 99-year leasehold site at Yishun Avenue 1/Miltonia Close was closed yesterday, with a total of eight bids received.
A consortium comprising T G Development Pte Ltd and Master Contract Services Pte Ltd submitted the highest bid of S$138.9 million.
S L (Serangoon) Pte Ltd offered the second highest bid at S$131.03 million, while a joint offer from Hangzhou Headway Real Estate Co Ltd and Hua Yuan Organisation Pte Ltd was the lowest at S$119.25 million.
“The top bid of S$138.9 million or S$364 psf/plot ratio will translate to a breakeven cost of around S$750 psf. When launched, units in this new project can fetch around S$850 psf to S$900 psf,” said Li Hiaw Ho, Executive Director of CBRE Research.
Other firms that participated in the tender include Intrepid Investments Pte Ltd (S$129.89 million), Frasers Centrepoint Limited (S$129.88 million) and Peak Shines Pte Ltd (S$126.5 million).
According to Colliers International, the highest bid fell within expectation, “taking cognisance of prevailing market conditions. In fact, the top three bids came in at close range with the top bid about six percent and 6.9 percent above the second and third highest bids respectively.”
It added that the provisional tender result reflects “a healthy level of interest for a suburban site that is backed by the robust mass-market housing buying demand despite the current uncertainties on the global economic front.”
Located on the fringe of Yishun New Town, the land parcel has a total area of 16,900 sq m and a maximum gross floor area (GFA) of 35,490 sq m. It is zoned for condominium housing that can potentially produce some 355 units.
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