A condominium site at Bishan Street 14 has attracted a total of 19 bids, with the highest bid of S$550.1 million offered by Bishan Residential Development Ltd.
“The overwhelming response of 19 bids to the residential site at Bishan Street 14 showed that developers are optimistic about the residential market and the attractiveness of the site,” said Mr. Li Hiaw Ho, Executive Director of CB Richard Ellis (CBRE) Research, adding that the site “is one of the better located sites in the GLS confirmed list for H1 2011.”
Mr. Li noted that the S$550.1 million top bid for the site works out to around S$869 psf ppr. This “translates to a breakeven cost of around S$1,300 psf”.
The second highest bid was offered by Keppel Land Realty Ltd at S$432.3 million, approximately 27 percent lower than the highest bid.
“The gap of 27 percent between the top bid and second bid shows (that) the developer’s eagerness to clinch this site due to its strong location attributes,” noted Mr. Li.
MCC Land (Singapore) Ltd, Sunmaster Holdings Ltd and Qingdao Construction (Singapore) Ltd offered the third, fourth and fifth highest bid for the site at S$427.8 million, S$418.0 million and S$400.7 million respectively.
The land parcel, which is located near the Bishan MRT station, was launched for sale on 21 January under the confirmed list of the 1H2011 GLS programme, after a developer committed to bid a minimum of S$189.83 million for the site.
“The subject property is a short walk from Junction 8 shopping mall and Bishan MRT Station, which is an interchange station for the North-South and Circle MRT Lines,” said Mr. Li.
He added that due to the “high plot ratio ascribed to the site, the future development can likely reach 40 storeys and residents living on higher floors can enjoy a good view as far as Macritchie Reservoir and Lower Peirce Reservoir.”
“We expect the new project to be able to attract upgraders in Bishan, Toa Payoh and the nearby landed estates as well as farther afield when it is launched,” he said.
Meanwhile, the Housing Development Board (HDB) said it still has to evaluate the tender bids and will announce the final results within the next two weeks.