A land parcel at the junction of Sengkang Square and Compassvale Road attracted the highest bid of S$286.8 million in a public tender that closed on 15 March.
“The top bid of S$286.79 million or S$502 psf ppr translates to a breakeven cost of around S$850 psf,” said Li Hiaw Ho, Executive Director of CB Richard Ellis (CBRE) Research.
The top bid for the site was offered by Keppel Land Realty Ltd, followed by the second highest bid of S$274.35 million, which was submitted through a joint bid between Sunmaster Holdings Ltd., Garden Estates Ltd and TID Residential Ltd.
Other bidders for the site included Qingdao Construction (Singapore), a tie-up bid between F.E. Lakeside Ltd and FCL Topaz Ltd, MCL Land Ltd, Allgreen Properties Ltd, Sim Lian Land, First Changi Development and Leng Hoe Development, which emerged the lowest bidder, at S$192.5 million.
“The 190,523-sf site has a plot ratio of 3.0 and around 530 housing units can be built on it,” said Mr. Li. It is “located within a few minutes’ walk to Sengkang MRT station and Compass Point shopping mall. The Sengkang Polyclinic and Nan Chiau Primary School are also situated nearby. As such, it is no surprise that it was able to draw nine bids.”
Mr. Li said that H20 Residences at Fernvale Link was recently launched and more than 200 units were sold over two weekends.
“We therefore expect the new residential project on the subject site to be able to fetch around S$1,000 psf. There is a ready pool of upgraders in Sengkang, Hougang and Punggol new towns who will be attracted to this project,” he noted.
The Housing Development Board (HDB) said it will still evaluate the tender bid and the final tender results will be announced within the next two weeks.