Suburban residential sites continue to receive strong interest despite the latest round of cooling measures as well as wider economic uncertainty.
The public tender for a residential site at the corner of Kovan Road and Simon Road has attracted 11 bids, with a consortium comprising Hoi Hup Realty Pte Ltd, Investment Focus Pte Ltd and Oriental Worldwide Investments Inc. submitting the highest bid of S$194.6 million.
This works out to around S$507 psf ppr on a total land area of 16,994.1 sq m.
“With 11 bidders for this site, it shows that for land with bite sizes of less than S$200 million, will continue to attract a number of bidders,” said Alan Cheong, Head of Research at Savills Singapore.
“The healthy list of bidders from this and recent tenders also show that developers are confident, that their balance sheets are strong enough to weather through concerns that the ABSD will lead to abject market conditions.”
Meanwhile, the second highest bid came from a joint offer between FCL Topaz Pte Ltd, F.E. Lakeside Pte Ltd and Sekisui House Singapore Pte Ltd at S$192.78 million, followed by a S$180.8 million bid by S L (Serangoon) Pte Ltd. Other bidders include UVD Pte Ltd, EL Development, MCL Land, Soilbuild Group Holdings and Mezzo Development, which offered the lowest bid of S$128 million.
The 99-year leasehold site, which was launched for sale on 29 November 2011, has a maximum gross floor area (GFA) of 35,688 sq m. It is located within an established residential estate in the north east region and could generate up to 360 housing units.
Cheong estimates that the project’s breakeven cost is about S$980 psf.
The Urban Redevelopment Authority (URA) said a decision on the award will be made after all the bids have been evaluated.
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