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Private residential site near Aljunied MRT Station attracts 16 bids

A private residential site near Aljunied MRT Station has attracted 16 bids, according to the Urban Redevelopment Authority (URA).

SINGAPORE: A private residential site near Aljunied MRT Station has attracted 16 bids, according to the Urban Redevelopment Authority (URA).

S L (Serangoon) Pte Ltd submitted the top bid of S$145.9 million for the 99-year leasehold site.

The bid was just 2.2 per cent more than the second highest bid of S$142.8 million from Tannery Holdings and Sekisui House.

A unit of City Developments, Verwood Holdings, and TID Residential put in the third highest bid of S$138.0 million.

The bid differential between the top and bottom bid was about 40 per cent.

Both large and small developers participated in the tender.

Christine Li, head of research & consultancy at OrangeTee said the site was hotly contested due to its relatively small size and the fact that there aren't many attractive sites on the 1H2014 government land sales programme on the confirmed list.

The Geylang East site has a gross floor area of 17,467 square metres. It is located near Aljunied MRT station and the future regional centre Paya Lebar Central.

Based on the top bid of S$145.9 million, or S$776 per square foot per plot ratio (psf ppr), Ms Li said the breakeven could be at around S$1,300 psf, and the project could start selling at around S$1,420 psf.

Recent projects nearby, both completed and uncompleted, are all freehold projects transacting between S$1,300 psf and S$1,500 psf on average. 

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