Wednesday, June 13, 2012

Buangkok Drive site tender gets S$301m top bid

A residential site at the junction of Buangkok Drive and Sengkang Central has attracted a highest bid of S$301 million from White Haven Properties, in a public tender that closed on 12 June 2012.

This works out to around S$508 psf ppr and reflects a breakeven cost of between S$900 psf and S$950 psf.

“The top bid at S$301 million submitted by a subsidiary of City Developments Limited for the subject site, is 3.7 percent lower than the Sengkang Square/Compassvale Drive condominium site, which was sold for S$528 per sq ft per plot ratio to EL Development,” said Chia Siew Chuin, Director of Research & Advisory at Colliers International.

“This could be that the latter site is locationally more attractive, as it is within walking distance to Compass Point and the Sengkang MRT Station.”

The site, which was launched for sale on 16 April 2012, has gained a total of five bids, with the second highest bid coming from a joint bid between Opal Star Ltd and Binjai Holdings Ltd at S$290.28 million. This was followed by Flamegold Ltd at S$284.8 million, while Qingjian Realty (South Pacific) Group and Vantage Properties offered the two lowest bids at S$257 million and S$226 million, respectively.

Chia said the top three bids for the residential site came in at narrow gaps, “with the top bid being 3.7 percent and 5.7 percent above the second and third highest bids, respectively.”

She added that “a selling price of above S$1,000 psf is envisaged for a new development on the site.”

Strategically located within 10 minutes walk to Buangkok MRT Station and well connected to major transportation hubs such as Kallang- Payar Lebar Expressway and Tampines Expressway, the 99-year leasehold site has a total area of 18,340.7 sq m and has a maximum permissible gross floor area of 55,023 sq m.

Li Hiaw Ho, Executive Director at CBRE Research, said a foodcourt and some convenience shops are also located close by.

“The neighbourhood comprises newly completed HDB flats and The Quartz private condominium,” said Li, adding that “the site can be developed into a 600-unit condominium.”

The Urban Redevelopment Authority (URA) said a decision on the award of the tender will be made at a later date, after the bids have been evaluated.

View the original article here

Source From Property Guru

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