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18-10-12, 13:01
http://www.straitstimes.com/archive/wednesday/premium/money/story/tanah-merah-site-pulls-robust-bids-20121017
Tanah Merah site pulls in robust bids
Strong sales performance of nearby eCO development said to be a factor
Published on Oct 17, 2012
By Amanda Tan
A UNIT of Keppel Land has topped the bids in an aggressive 11-way fight that drove offers for a Tanah Merah site well above market expectations.
Sherwood Development lodged the top bid of $434.6 million, or about $791 per sq ft per plot ratio (psf ppr) for the 31,882 sq m plot.
Property experts had tipped the site to cost $550 psf ppr to $700 psf ppr or about $302 million to $384 million.
Bayfront Land's $405.9 million, or $739 psf ppr, was next while the $275 million from Vantage Properties was the lowest.
Familiar names were back in fourth - a joint bid of $364.8 million from Far East Orchard, FCL Topaz and Sekisui House.
The New Upper Changi Road plot is one of two in the area that residents had petitioned the Government to keep undeveloped.
The other - at the junction of New Upper Changi Road and Bedok South Avenue 3 - is on the reserve list of the Government land sales programme and will need an acceptable minimum bid to trigger the sales process.
A group of more than 40 Limau Estate residents had earlier failed to stop the plots from being put up for sale to preserve the greenery.
The Ministry of National Development turned down the appeal.
The area is near Tanah Merah MRT, East Coast Park, Changi Airport and schools such as Temasek Junior College and Red Swastika School.
Mr Ong Teck Hui, Jones Lang LaSalle's national director of Singapore research, said: "Bidding was aggressive and way above expectations... the top bidder appears to have put in an extra robust offer to secure the site.
"The bidders were obviously encouraged by the strong sales performance of (the nearby) eCO when it was launched recently, fetching optimistic prices of $1,089 psf to $1,580 psf."
Mr Ong added that "there is keen buying interest in the Bedok and Tanah Merah locality, especially for projects near MRT stations".
ERA Realty key executive officer Eugene Lim said Far East Organization, Frasers Centrepoint Limited and Sekisui House likely placed a joint bid "to protect their land value".
The three developers are behind the newly-launched eCO in Bedok South Avenue 3.
Mr Ong said the average selling price for homes on the new site could be at least $1,300 psf, "a shade" higher than eCO's as it is closer to the MRT station.
Keppel Land called the site "prime" in a statement yesterday and said it plans to develop about 700 homes ranging from 500 sq ft to 1,400 sq ft.
Mr Augustine Tan, president (Singapore residential) at Keppel Land, said: "Demand for well-located suburban homes remains resilient and we are confident that this new development will garner positive interest."
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Tanah Merah site pulls in robust bids
Strong sales performance of nearby eCO development said to be a factor
Published on Oct 17, 2012
By Amanda Tan
A UNIT of Keppel Land has topped the bids in an aggressive 11-way fight that drove offers for a Tanah Merah site well above market expectations.
Sherwood Development lodged the top bid of $434.6 million, or about $791 per sq ft per plot ratio (psf ppr) for the 31,882 sq m plot.
Property experts had tipped the site to cost $550 psf ppr to $700 psf ppr or about $302 million to $384 million.
Bayfront Land's $405.9 million, or $739 psf ppr, was next while the $275 million from Vantage Properties was the lowest.
Familiar names were back in fourth - a joint bid of $364.8 million from Far East Orchard, FCL Topaz and Sekisui House.
The New Upper Changi Road plot is one of two in the area that residents had petitioned the Government to keep undeveloped.
The other - at the junction of New Upper Changi Road and Bedok South Avenue 3 - is on the reserve list of the Government land sales programme and will need an acceptable minimum bid to trigger the sales process.
A group of more than 40 Limau Estate residents had earlier failed to stop the plots from being put up for sale to preserve the greenery.
The Ministry of National Development turned down the appeal.
The area is near Tanah Merah MRT, East Coast Park, Changi Airport and schools such as Temasek Junior College and Red Swastika School.
Mr Ong Teck Hui, Jones Lang LaSalle's national director of Singapore research, said: "Bidding was aggressive and way above expectations... the top bidder appears to have put in an extra robust offer to secure the site.
"The bidders were obviously encouraged by the strong sales performance of (the nearby) eCO when it was launched recently, fetching optimistic prices of $1,089 psf to $1,580 psf."
Mr Ong added that "there is keen buying interest in the Bedok and Tanah Merah locality, especially for projects near MRT stations".
ERA Realty key executive officer Eugene Lim said Far East Organization, Frasers Centrepoint Limited and Sekisui House likely placed a joint bid "to protect their land value".
The three developers are behind the newly-launched eCO in Bedok South Avenue 3.
Mr Ong said the average selling price for homes on the new site could be at least $1,300 psf, "a shade" higher than eCO's as it is closer to the MRT station.
Keppel Land called the site "prime" in a statement yesterday and said it plans to develop about 700 homes ranging from 500 sq ft to 1,400 sq ft.
Mr Augustine Tan, president (Singapore residential) at Keppel Land, said: "Demand for well-located suburban homes remains resilient and we are confident that this new development will garner positive interest."
[email protected]