Asset Legend Limited, believed to be a unit of Li Ka-shing’s Cheung Kong Holdings, has been awarded with the tender for the residential with first storey commercial site at Upper Serangoon Road / Kovan.
According to the Urban Redevelopment Authority’s tender results released today, it offered S$276.8 million, or S$848.84 per square foot per plot ratio (psf ppr), for the 99-year leasehold land parcel measuring 10,097.1sqm. This translates to a breakeven price of at least S$1,300psf for the residential units. Conveniently located near Kovan MRT Station, it is expected to yield about 340 housing units.
This is higher than consultants’ expectations of S$670-750 psf ppr. It is considered “aggressive” by analysts, who had expected more caution due to the new prefabrication requirements, which is likely to lead to marginally higher construction costs.
The top bid is 15 per cent more than the next highest bid of S$240 million (S$736.06 psf ppr), put in by Sustained Land’s SL Capital Ventures Pte Ltd.
The winning margin is “rather surprising, especially in light of the current market sentiment”, said JLL head of South-east Asia research Chua Yang Liang. “In our opinion, the second bid price is more in line with current market expectations.”
A consortium comprising City Developments unit Verwood Holdings, Hong Leong Group’s Intrepid Investments, and TID Residential put in the third-highest bid of S$234.6 million (S$719.50 psf ppr).
The tender attracted 11 bids in all, within consultants’ expectations. The lowest bid of S$172.7 million (S$529.66 psf ppr) came from Koh Brothers unit KBD Ventures.
Located within an established residential area, residents of this upcoming development can dine at popular eateries at Upper Serangoon Road and shop at Heartland Mall and NEX. Sports and recreation facilities are only a short drive away at Hougang Stadium, Swimming Complex and Sports Hall.