Commercial site at Sengkang attracts top bid of S$328m
The state tender for a commercial plot at the junction of Sengkang West Avenue and Fernvale Road has attracted a total of 12 bids, with Earth Holdings, a subsidiary of Singapore Press Holdings (SPH), offering the highest bid of S$328 million.
This works out to around S$1,155.52 psf ppr on a total land area of 8,790.3 sq m. The top bid was also 20.5 percent higher than the second highest bid by Alpro Management Services at S$272.22 million.
Meanwhile, the third highest bid of S$227.4 million was offered by Mapletree Trustee Pte Ltd, while Unique Capital submitted the lowest bid at S$128.3 million.
Ong Teck Hui, Executive Director at Credo Real Estate, said the strong response was attributed to the "optimism that suburban retail business will continue to do well in spite of slower economic conditions."
"A retail centre with a trade mix that caters more to the needs of heartlanders is likely to be well patronised by shoppers, thus ensuring its viability. Furthermore, many retailers are keen to establish footholds in new retail centres in order to grow their business," he said.
Launched for sale on 21 November 2011, the triangular plot has a maximum gross floor area (GFA) of 26,370.9 sq m and a gross plot ratio of 3.0. The site presents an excellent opportunity for the developer to create a landmark commercial development.
According to Ong, "This is a location with a lot of growth potential because this part of Sengkang has a good mix of existing public housing and landed homes (in the nearby Yio Chu Kang and Seletar areas)."
"In addition, there's potential for more middle-class public housing to be built in the area. And then there's the Seletar Aerospace Park. All these will provide a good catchment of shoppers for the proposed mall development on this site."
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