The tender for a 99-year leasehold site at Sembawang Road / Jalan Sendudok closed yesterday, with Hao Yuan Investment offering the highest bid of S$191.8 million.
“The top bid of S$191.8 million or S$460 psf ppr is somewhat higher than market expectations back in March 2011,” said Li Hiaw Ho, Executive Director at CBRE Research.
“The confidence in this site could be attributed to the good response to Canberra Residences, and more recently, Eight Courtyards located at Yishun Avenue 2/Avenue 7.”
Mr. Li noted that Canberra Residences has sold 85 percent of its 320 units, while Eight Courtyards has sold around 75 percent of its 654 units. “Their respective average prices are S$830 psf and S$800 psf. Based on the bid price, a new project will breakeven at around S$800 psf,” he said.
Meanwhile, the second highest bid was jointly submitted by Fragrance Group Ltd and Aspial Corporation Ltd at S$172.55 million, which was 11 percent lower than the highest bid.
The tender for the site attracted a total of six bids, including a tie-up bid between FCL Topaz Ltd and F.E. Lakeside Ltd, as well as another joint bid between Hoi Hup Realty Ltd and Sunway Developments Ltd. Allgreen Properties Ltd emerged as the lowest bidder, offering only S$120.98 million, or approximately S$3,123 psm of gross floor area (GFA).
The site, which was launched for sale on 29 March, has a total area of 27,665.5 sq m and a maximum permissible GFA of 38,732 sq m. It is zoned for residential development and could potentially yield up to 1,500 housing units.
The residential site is located close to Sembawang MRT Station and adjacent to Sembawang Shopping Centre and Sun Plaza.
“For its location at Sembawang Road between Sembawang Shopping Centre and Canberra Residences, the subject site seems fairly popular by the number and quantum of bids it has attracted,” said Mr. Li.
“The Sembawang MRT station is a short drive away. The future development on the subject site will be a five-storey condominium of around 390 units.”
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