Hillview site tender attracts 12 bids

29 Apr 2011

A public tender for a land parcel at Hillview Avenue that could yield up to 400 housing units and some retail space has attracted a total of 12 bids.

The highest bid came from Tuas Technology Park Ltd, offering S$289.8 million (approximately S$672.60 psf ppr) for the site, which was launched for sale on 28 February.

The S$289.8 million top bid offered by Tuas Technology was 2.7 percent higher than the second highest bid of S$282.2 million, which was jointly offered by Sing Holdings Ltd and Fragrance Group Ltd.

The 99-year leasehold site has a total area of 14,294.3 sq m and a maximum permissible gross floor area (GFA) of 40,025 sq m. It is located near the upcoming Cashew and Hillview MRT stations, which are part of the Downtown Line 2 (DTL2) MRT system.

The land site is proposed for commercial and residential development. Of the total GFA, 15 percent (approximately 6,000 sq m) will be allocated for commercial development, to provide convenient retail amenities for Hillview residents.

With the site’s 15 percent retail component, several market watchers said the S$672.60 psf ppr price fetched for the site is among the highest for 99-year suburban land sites that can be used for private residential developments.

Chia Siew Chuin, Director of Research and Advisory at Colliers International, noted that the breakeven cost for a new development on the site could be approximately S$1,100 psf.

Ong Teck Hui, Executive Director at Credo Real Estate, also said that the site’s commercial components will likely see strong patronage from residents in the vicinity.

“There’s a lack of such amenities in the immediate area. Currently, the nearest shops and eating places are at The Rail Mall, along Upper Bukit Timah Road, or within the HDB estates in Bukit Batok New Town,” he said.

Other bidders for the site include a joint bid between Sim Lian Land Ltd and Sim Lian Development, Centurion RE Ltd, Hillmost Holdings, UVD Ltd, Bauhinia Land, Frasers Centrepoint, Asset Legend Ltd, Teneriffe Development, CEL Development and Leng Hoe Development, which emerged the lowest bidder at S$175.8 million, approximately S$408 psf ppr.

The Urban Redevelopment Authority (URA) said it will still evaluate the tender results and a decision on the award will be made at a later date.

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