June 22, 2012 | By: Amanda Tan | The Straits Times
SIX developers have lodged strong bids for a prime residential site on Farrer Drive.
Singland Development put in the top bid of $113.2 million, or about $1,049 per sq ft per plot ratio (psf ppr).
If bids for Sentosa sites are excluded, this would be one of the highest land prices in terms of psf ppr for a non-landed site under the Government Land Sales programme, said SLP International’s head of research Nicholas Mak yesterday.
Far East Soho, a unit of giant developer Far East Organization, bid $102.8 million, or about $952 psf ppr, while Tang Boulevard was fourth with $98 million, or about $908 psf ppr. Keppel Land unit Sherwood Development placed the lowest bid of $91.5 million, or about $848 psf ppr.
Most of the bids for the 99-year leasehold plot beat expectations, said Mr Mak, who had tipped offers of from $89 million to $94 million.
He noted that the site’s prime location and the perceived lack of competition due to a scarcity of vacant development sites in the area were likely to be behind the good showing.
The 6,268 sq m site was triggered for tender by a developer after it was made available for sale through the reserve list in April.
The plot can accommodate between 120 units and 150 units, given its maximum permissible gross floor area of 10,030 sq m.
Dennis Wee Group’s senior manager of research and consultancy, Mr Lee Sze Teck, noted that the site attracted only six bidders despite being in the prime District 10.
He attributed the low number to ‘lacklustre sales at some centrally located projects’ recently, renewed concerns in Europe and the prospect of more sites being released in the second half of the year.
Mr Mak said the project could target investors, as it is likely to host smaller units.
Experts said the site’s breakeven price is between $1,450 psf and $1,550 psf. Launch prices for the new units could be from $1,750 psf to $1,800 psf.