The tender for a residential site (pictured) at Dairy Farm Road closed yesterday with a top bid of S$244.318 million from a consortium comprising First Shine Properties and Meadows Bright Development, according to the Urban Redevelopment Authority (URA).
Launched for sale on 23 July and offered on a 99-year lease term, the site fetched a total of nine bids from interested developers. The 17,545.8 sq m plot could be developed into 390 condo units or flats.
Strong interest for the site is attributed to its proximity to the upcoming Hillview MRT station (Downtown Line 2) and the continued low interest rate environment, said Chia Siew Chuin, Director of Research & Advisory at Colliers International.
The top bid of S$244.318 million or S$616 psf ppr is 9.9 and 12 percent more than the next two highest bids, Chia noted.
But it is still 3.5 percent lower than the S$638 psf ppr paid for a neighbouring site at Hillview Avenue, which could be due to the new guidelines on the allowable number of units below 70 sq m for suburban areas.
“Based on a land cost of S$616 psf ppr, the breakeven price is likely to be around S$950 psf to S$1,050 psf, and units in this project could launch from S$1,200 psf onwards,” added Chia.
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