15 bids received for residential site at Serangoon Ave 3

The Urban Redevelopment Authority (URA) received 15 bids at the close of the tender for the residential site at Serangoon Avenue 3 on Wednesday.

The site, which was originally on the Reserve List of the Government Land Sales Programme, was launched for public tender on September 9. The 99-year leasehold site has an area of about 13,877 square metres and a maximum permissible gross floor area of 38,857 square metres.

Intrepid Investments submitted the highest bid of S$221.2 million, followed by Tuas Hi-Tech Park at S$195.9 million and Keppel Land at S$190 million. The lowest bid of S$120 million came from Lippo Estates.

Li Hiaw Ho, Executive Director, CBRE Research, said: “The popularity of the Serangoon Avenue 3 site is evidenced by the 15 bids that were submitted as well as their price quantum.

“Developers are very confident of this site because it is situated next to the Lorong Chuan MRT station and is close to the Australian International School. It is also close to amenities in Serangoon Gardens and the upcoming shopping mall, nex, at Serangoon Interchange station.”

CBRE said the top bid of S$221.2 million works out to S$529 per square foot per plot ratio and is 164 per cent above the reserve price of S$83.7 million.

“This price will likely translate into a breakeven price of about S$900 psf to S$950 psf for the future condominium project to be built on this site. Based on this breakeven estimate, the possible selling price could range from S$1,000 psf to S$1,100 psf,” said Li.

Recent caveats of nearby properties – The Chuan, a 999-year leasehold condo development, and the freehold Goldenhill Park – showed selling prices ranging from S$830 to S$1,000 psf, while those in the 99-year leasehold The Springbloom were selling at S$600 to S$700 psf.

URA said a decision on the award of the tender for the Serangoon Avenue 3 site will be made after the bids have been evaluated.

Source : Channel NewsAsia – 7 Oct 2009

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