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30 November 2012

30th November, Friday




S$505m top bid for Bishan site

Source: Today

The tender for a large private residential site near Bishan MRT Station garnered nine bids by the close Thursday, with the top bid of S$505.1 million coming from Allamanda Residential Development, a subsidiary of Singapore's largest listed developer, CapitaLand.

The 99-year leasehold site at Bishan Street 14, released from the Confirmed List of the Government Land Sales (GLS) programme, sits on 120,855 sq ft of land. With a plot ratio of 4.9, it has a maximum allowable gross floor area of 592,189 sq ft and can be developed into about 645 homes.

The top bid translates to S$853 per sq ft per plot ratio and is 3.1 per cent higher than the second best bid from a consortium of SingLand, UOL and Orix.

Mr Lee Sze Teck, Senior Manager of Training, Research and Consultancy at DWG, said: "CapitaLand put in a strong bid to defend its earlier site, for which it paid S$869 psf ppr in February last year." The project on the earlier site, Sky Habitat, is expected to get its Temporary Occupation Permit in 2015.

He noted that the current bid put in by the CapitaLand unit was 1.8 per cent lower than its previous bid in February last year, while the one jointly submitted by Singland, UOL and Orix was 4.7 per cent lower than their previous bid.

He said: "This means that developers believe that the current average selling price of Sky Habitat is a fair price for the location." He estimated the breakeven price at between S$1,350 and S$1,400 psf and the selling price at between S$1,650 and S$1,700 psf, on par with Sky Habitat.

Amenities in the area include schools, shopping malls, a swimming complex and the CPF Building. If the development is oriented towards Bishan Road, it will enjoy unblocked views all the way to Thomson and future residents can even see MacRitchie Reservoir, Mr Lee added.

The Housing and Development Board, as the Government's land sales agent, will award the tender at a later date.


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