The tender for a residential site at Buangkok Drive/Sengkang Central has attracted five bids.
According to the Urban Redevelopment Authority (URA), White Haven Properties placed the top bid of S$301 million for the 99-year leasehold site.
White Haven Properties is a unit of Singapore-listed City Developments (CDL).
In a statement, CDL said it plans to build a residential development of about 16 storeys if the company is successful with the tender.
CDL added that it is familiar with the vicinity. It is developing the 521-unit H2O Residences at Sengkang, of which 86 per cent of the 450 units released have been sold.
The other four bids lodged range from S$226 million to S$290 million.
The site spans about 18,340 square metres with a maximum gross floor area of 55,023 square metres.
It is estimated that the developer will be able to build some 580 dwelling units on the site.
Property consultancy CBRE said the top bid of S$301 million works out to a breakeven cost of between S$900 and S$950 per square foot.
And it added that the new development is expected to be priced at an average of around S$1,040 per square foot, similar to the average price of units at a nearby project, The Luxurie.
Meanwhile, DWG Research attributed the strong bids for the site to its attractive location near Buangkok MRT station and the mature Hougang town where there are plenty of amenities.
Commenting on the tender, Colliers International said HDB residents whose flats recently turned five years might consider upgrading to units in this new development, given the strong HDB resale prices in the vicinity.
Colliers added that the median resale prices of five-room and executive apartments in Sengkang were S$512,600 and S$600,000 respectively in Q1 2012. Resale prices of five-room flats were S$523,500 in the nearby Punggol.
URA said a decision on the award of the tender will be made after the bids have been evaluated.
Source : CNA – 2012 Jun 12
Lush Dream Home 