The 99-year leasehold site in Upper Bukit Timah saw fierce bidding from developers looking to replenish their land banks. Image source: URA
A 1.87ha residential site at Toh Tuck Road in Upper Bukit Timah attracted overwhelming interest from property developers, with a total of 24 bids submitted after the tender exercise closed on Tuesday (11 April), said the Urban Redevelopment Authority (URA).
Launched for sale on 28 February 2017, the 99-year leasehold site has a maximum permissible gross floor area of 282,122 sq ft. The future development is expected to yield 325 units.
Malaysian developer S P Setia submitted the highest bid of $265 million for the plot, which works out to $939 psf per plot ratio (psf ppr). This was followed by SingHaiyi Investments with a bid of $260.2 million ($922 psf ppr) and Centrex Developments which offered to pay $250.9 million ($889 psf ppr).
Ong Teck Hui, National Director, Research & Consultancy at JLL, said it was “bewildering” to see so many parties contest for the site, adding that the top bid was “well above expectations”.
“Bidding was particularly aggressive among the top five bidders, which was within a 10.4 percent price range and upwards of $850 psf ppr, suggesting that they shared a similar bullish market outlook. The optimistic top bid suggests that the project is likely to be launched at prices above current levels,” said Ong.
Desmond Sim, Head, CBRE Research, Singapore and South East Asia, explained that the high number of bids reflects the eagerness of home builders to shore up their land banks in the face of a dwindling number of residential plots for sale.
“This is a very clear indication that the window of opportunity through government land sales has tightened. The plot’s attractive quantum of $265 million gave developers’ the extra nudge, along with increasing confidence in the market’s possible recovery in the medium term. The bid value may be relatively high, but the manageable project size of around 325 units makes it a less risky proposition,” noted Sim.
Located within an established residential estate, the site is close to shopping centres, eateries and established schools, including Ngee Ann Polytechnic. The Beauty World MRT station is also nearby.
A decision on the award of the tender will be made after the bids have been evaluated, said the URA.