The Urban Redevelopment Authority (URA) said the tender for a commercial and residential site at Hillview Avenue closed on Thursday with a total of 12 bids.
The highest bid of S$289.77 million came from Tuas Technology Park, while the joint bid by Sing Holdings Limited and Fragrance Group Limited came in second at S$282.21 million.
Sim Lian Land and Sim Lian Development jointly handed in the third highest bid of S$268 million, while the lowest bid was S$175.80 million from Leng Hoe Development.
Colliers International’s Director of Research & Advisory, Chia Siew Chuin, attributes the healthy number of bids to the site’s proximity to the upcoming Hillview MRT Station and an established private residential area.
She added that it will also enjoy “future potential spill-over benefits” from upcoming land developments along the railway track.
“The highest bid price at S$673 per square foot per plot ratio (ppr) received for the tender of the subject site is generally reflective of the market expectations, where the land price gaps between the top three bids are about 3 to 8 per cent apart,” Ms Chia said.
She estimates breakeven for a new project at the site at S$1,100 per square foot.
The 99-year lease site measuring 14,294.3 square metres has a maximum permissible gross floor area of 40,025 square metres.
It was launched for public tender on February 28. URA said the decision on the tender award will be made at a later date after evaluating the bids.
Source : CNA – 28 Apr 2011