THE state tender for a 99-year-leasehold private residential plot at Bright Hill Drive yesterday beat analyst expectations, fetching a top bid of $719.9 per square foot per plot ratio (psf ppr), or $291.5 million.
The top bid, which was submitted by UVD Pte Ltd, a joint venture company between Singapore Land and UOL Group, was 18.1 per cent more than the $246.8 million, or $609.4 psf ppr, offer put up by the consortium comprising Frasers Centrepoint's FCL Topaz, Far East Orchard Limited and Japan's Sekisui House Ltd.
Analysts polled by BT when the plot was launched in June said it could fetch $550-$620 psf ppr. The plot has a site area of about 144,635.6 sq ft and a maximum gross floor area of 404,979.7 sq ft. It is zoned for condominium; or flats; or a combination of flats and strata landed houses with prior written approval. The site drew six bids at the close of the tender yesterday.
"As expected, there wasn't widespread interest for the subject site, unlike those near MRT stations, although the robust top bid of $720 psf ppr was higher than expected," noted Credo Real Estate executive director Ong Teck Hui.
"Based on caveats lodged, average selling price for Thomson Grand was around $1,250 psf and market expectations were for this site to be priced a shade lower than Thomson Grand, translating to land price being closer to $600 psf ppr which we saw in the second to fourth highest bids," he added.
That being said, optimism for the site could be due to the fact that there are hardly any new condominium developments along the Upper Thomson corridor and there seems to be resurgence in interest in recent months in that locality. For example, the remaining 48 per cent of the units in Thomson Grand were sold out from February to April, pointed out Mr Ong.
Nicholas Mak, executive director, research and consultancy, SLP International Property Consultants, noted that the top bid is the second highest land price in terms of psf ppr submitted in a residential GLS tender this year, to date.
Lee Sze Teck, senior manager (research and consultancy) at Dennis Wee Goup, said that the break-even cost could be around $1,100-$1,150 psf, and the average selling price around $1,250-
$1,300 psf. "The plus points of the site are the low-density developments surrounding it and near to amenities like Thomson Plaza and Ai Tong School. The project can also enjoy view of MacRitchie Reservoir. But the downside is that the odd shape of the site and the narrow access."
Said a UVD spokesman: "The site has a number of strong attributes. Thomson is an area with an affluent catchment and limited supply. Our development will be a 20-storey, 420-unit condominium, capitalising on the unblocked views of MacRitchie Reservoir and the Singapore Island Country Club. Furthermore, the site is also close to amenities like Thomson Plaza, Ai Tong Primary School and Catholic High School. . . Our breakeven price is around $1,100 psf."
The lowest bid, which was put up by Wee Hur Development, came in at $509.2 psf ppr.
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