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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