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Sengkang Square site attracts top bid of S$383.3m

A WELL-SITED residential plot in Sengkang Square has attracted five bids – weaker interest than industry experts had expected. EL Development put in the top bid of $383.3 million, or $527.65 per sq ft per plot ratio (psf ppr).

White Haven Properties came in second with a pitch of $348 million, or $479.02 psf ppr. The lowest bid, from Singland Development and UOL Venture Investments, was $301.8 million, or $415.42 psf ppr.

Put up for tender on 16 April and slated for condo or flat development, the Sengkang Square/Compassvale Drive site measures 22,497.6 sq m and could yield around 710 units. With prior approval, the 99-year leasehold site may also be developed into a combination of flats and strata landed houses.

The successful developer can build condominiums or flats on the 22,498 sq m site, or seek approval for a combination of flats and strata-landed homes. Credo Real Estate executive director Ong Teck Hui had expected the site to draw eight to 12 bids, given its proximity to Sengkang MRT station and Compass Point.

In addition, he noted: ‘It’s a firm top bid… surpassing that for The Luxurie site next door which was sold in March 2011 for $502 psf ppr.’

Chia Siew Chuin, Director of Research & Advisory at Colliers International, noted that response for the site was “relatively lukewarm” compared to the 12 bids received for a residential site at Boon Lay Way (Jurong Gateway) on Tuesday. Colliers said this was due to the availability of many well-located condominium sites whereby the tenders will close next month.

“Nevertheless, EL Development Pte Ltd put in an optimistic bid, topping the five-way tender at S$383.33 million or S$527.65 psf per plot.”

CBRE executive director (residential) Joseph Tan said ‘the quantum of the bids signifies developers’ confidence in mass-market housing and in sites that are located near MRT stations’. He noted that the top bid ‘translates to a break-even cost of $900 psf to $950 psf’.

Sengkang Square Site |

EL Development managing director Lim Yew Soon said potential buyers can expect a condo comprising 14 blocks of 15 storeys each. He added that the selling price would be around $1,000 psf to $1,050 psf on average.

Meanwhile, the Urban Redevelopment Authority (URA) has announced the final tender results for the Boon Lay Way (Jurong Gateway) siteMCL Land Limited won the tender after offering a top bid of S$369.388 million, which works out to around S$705.10 psf ppr. The 99-year leasehold site is estimated to yield 590 units.

Jalan Bukit Merah / Alexandra Road Hotel Site

Ex-SAFRA Hotel Site Location |

CEL Development was awarded the 7,946.2sqm hotel land site at Jalan Bukit Merah/Alexandra Road under the Reserve List of the Government Land Sales Programme. URA had, on 22 September 2011, accepted a successful application for the site to be put up for sale. The site, was also the ex-SAFRA at Bukit Merah, was offered for sale on a 99-year lease.

CEL Development is a wholly owned subsidiary of Chip Eng Seng Corporation Ltd, a public listed company in Singapore since 1999. Their top bid of $189m, works out to be $8,494.76 psm based on the maximum permissible GFA of 22,249sqm.

The land parcel is located at the junction of Alexandra Road and Jalan Bukit Merah at the fringe of the city centre. Right besides Ikea and with Alexandra Village, Anchorpoint and Queensway Shopping Centre walking distance away, the hotel land site will avail its guests ample food & beverage and entertainment choices.

It is also conveniently linked to the rest of the island via Ayer Rajah Expressway and is served by the nearby Queenstown and Redhill MRT Stations.

Alexandra Hotel site |

In addition, the hotel land site is located near major tourist attractions like Orchard Road, Mount Faber, Vivo City and Sentosa. Business travellers will also enjoy the close proximity to the businesses and hotels in Central Business District and Marina Bay, which are just 15 minutes drive away.

For more information, do check out our New Launches section soon as the Alexandra Road Hotel Site showflat will be coming up with exciting commercial retail shops up for sale in Dec 2012!!

Residential site at Dairy Farm GLS attracts record bid

Dairy-Farm-Road New Launch | SGRealist.comThe tender for a residential site (pictured left) at Dairy Farm Road closed 18 Sept 2012 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 2012 and offered on a 99-year lease term, the site fetched a total of nine bids from interested developers. The Dairy Farm site can be developed into no more than 526 units. The 188,861 sqft site on Dairy Farm Road has a maximum gross floor area (GFA) of 396,617sqft and a maximum building height of part five storeys and part 15 storeys, subject to 140m above sea level.

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. 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 the likely average selling price at $1,200psf onwards.

Considering this news, those who love these nature and green locations, you may want to decide in two things :

1) Buy the freehold condos at Hume Avenue/Upper Bukit Timah at $1000psf, you still can get this price, but the unit size maybe bigger, so if you have a budget about $1.5M I believe you can get a decent 3 bedrooms there; OR

2) Buy a new launched condo such as Foresque Residences at below $1100psf. There should be upside, and there are some units with unblocked view of Dairy Farm and some very high floor you may overlook Peirce Reservoir.

Anyway, it is interesting to note that all 20-25 mins drive to Central Area is fetching $1,300-$1,400psf now, a $200-$300psf higher than two years back.