Top bid for Dundee Road GLS site reflected developer's confidence

By The Folks @PropTalk - June 24, 2015 No Comments

While interest for a Dundee Road private housing site has paled in comparison to the hotly-contested site in Toa Payoh days earlier, analysts said the top bid in the latest tender reflects the developer’s confidence in the Queenstown area.

At the close of tender yesterday, the 99-year leasehold site received nine bids, with the top bid of $483.2 million put in by Chinese developer Hao Yuan’s unit HY Realty, the Housing and Development Board said.

The 113,194sqft site, released from the Confirmed List of the Government Land Sales (GLS) programme, has a plot ratio of 4.9. With a maximum gross floor area of 554,652sqft, it can yield an estimated 645 dwelling units. The top bid works out to around $871psf ppr. 

Property analysts noted that the HY Realty’s bid was 8.4% higher than the second-highest bid of $445.9 million, or around $804psf ppr, from Allgreen Properties.

“With a winning margin of more than 8%, the bid demonstrates the confidence in the mature estate of Queenstown with its network of amenities and the MRT being located right next to the site, as well as the stability of the Singapore market,” said Mr Desmond Sim, Singapore and South-east Asia head of property firm CBRE Research.

Dr Chua Yang Liang, head of research for South-east Asia at real estate firm JLL, noted that HY Realty had not been successful in its previous attempts to secure sites under the GLS — a factor that could explain its aggressive bid.

He added that the top bid could translate into a selling price of between $1,550psf and $1,600psf, assuming a construction cost of $320psf to $360psf.

“This could be priced to sell, especially since the average take-up rate of the nearby projects around Queenstown and Redhill have been about 20 to 60% with an average price for new sales ranging between $1,680psf and $1,750psf,” he said.
Source: TODAY

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