Wednesday, August 08, 2012

Bright Hill Drive site attracts top bid of S$291.5m

A 99-year leasehold residential site at Bright Hill Drive attracted a total of six bids, with the highest offer at S$291.5 million or S$719.9 psf ppr, according to the Housing and Development Board (HDB).

UVD Pte Ltd, a joint venture (JV) company between UOL Group and Singapore Land, submitted the top bid which was 18.1 percent more than the second highest figure of S$246.8 million.

With a land area of 144,635.6 sq ft, the site offers a maximum permissible gross floor area (GFA) of 404,979.7 sq ft and a gross plot ratio of 2.8.

When the tender was launched in June, analysts expected bids to range from S$550 to S$620 psf ppr.

“As expected, there wasn't widespread interest for the subject site, unlike those near MRT stations, although the robust top bid of S$720 psf ppr was higher than expected,” said Ong Teck Hui, Executive Director at Credo Real Estate.

Meanwhile, Nicholas Mak, Executive Director for Research and Consultancy at SLP International Property Consultants, said that the top bid was the second highest land price in terms of psf ppr that was submitted for a residential GLS tender this year, to date.

The break-even cost could range from S$1,100 to S$1,150 psf while the average selling price would likely be S$1,250 to S$1,300 psf, said Lee Sze Teck, Senior Manager (Research and Consultancy) at Dennis Wee Group.

Lee attributed the strong bid to nearby low-density developments and amenities such as Ai Tong School and Thomson Plaza, although “the downside is the odd shape of the site and the narrow access”.

View the original article here

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