Sunday, October 21, 2012

Bullish bids for New Upper Changi Road site

A residential site (pictured) at New Upper Changi Road (Parcel A) attracted strong interest with a total of 11 bids received when the Urban Redevelopment Authority (URA) closed the public tender yesterday.

The site has an area of 31,881.6 sq m and a maximum permissible gross floor area (GFA) of 51,011 sq m.

“The 11 bids garnered for the site and the quantum of the bids show that developers are confident that this residential project will be well-received when launched,” said Joseph Tan, Executive Director for Residential at CBRE.

The site’s popularity could be attributed to its ideal location at the junction of Upper Changi Road and Bedok Road, which is accessible to various amenities and major expressways. Moreover, the future development will be more than 10 storeys high, providing residents with unblocked views.

Chia Siew Chuin, Director of Research & Advisory at Colliers International, said that bidders seem “unfazed by the latest pre-emptive measure imposed by the Monetary Authority of Singapore (MAS) to cap the loan tenures”.

She noted that the highest offer of S$434.55 million from Sherwood Development, a unit of Keppel Land, works out to S$791 psf ppr. The bid is 7.1 and 14.9 percent higher than the two closest bids.

“Developers’ keen interest as well as the bullish top bid are likely to be fuelled by the recent release of developers’ private home sales data for September,” Chia added.

Meanwhile, Keppel Land said that it plans to build around 700 one- to four-bedroom homes, ranging from 500 to 1,400 sq ft once URA awards the site to the developer.

“Demand for well-located suburban homes in Singapore remains resilient and we are confident that this new development will garner positive interest from genuine home buyers and upgraders looking for quality properties in the established and popular Tanah Merah precinct,” said Augustine Tan, President (Singapore Residential), Keppel Land.

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