The public tender for a residential site at Tanah Merah Kechil Road which closed yesterday received a top bid of S$285.21 million jointly from Fragrance Group and World Class Land, according to the Urban Redevelopment Authority (URA).
The 99-year leasehold site which has an area of 13,998.5 sq m attracted 13 developers. Areca Investment submitted the second highest bid of S$280 million while Trident Assets offered the lowest at S$202 million.
According to Chia Siew Chuin, Director of Research & Advisory at Colliers International, the strong turnout of bids reflects developers’ “continued optimism towards the private residential market, particularly the mass-market segment”.
The top bid of S$285 million which works out to S$676 psf ppr was merely 1.8 percent more than the second highest offer, noted Chia.
“The enthusiastic responses are likely to be spurred by the brisk sales data of recent suburban condominium launches as well as the excellent location of the site which is next to the Tanah Merah MRT station.”
Chia also noted that with the site being strategically located near the landed residential areas of Bedok Road, Lucky Heights estate and Simpang Bedok, “there could be sizeable portion of potential downgraders from these landed properties”.
With a land price of S$676 psf ppr, Chia expects the breakeven cost to be S$1,000 to S$1,100 psf while the predicted selling price will likely be above S$1,250 psf.
Source PropertyGuru – 2012 Aug 1