The tender for a 99-year leasehold residential site at Kovan Road / Simon Road drew 11 bids at the close yesterday, according to data from the Urban Redevelopment Authority.
The top bid of S$194.6 million, or about S$507 psf of gross floor area, was made by a three-way consortium comprising Hoi Hup Realty, Investment Focus and Oriental Worldwide Investments.
The 4.2-acre site has a maximum permissible gross floor area of 8.8 acres.
“With 11 bidders for this site, it shows that for land with bite sizes of less than S$200 million will continue to attract a number of bidders,” said Mr Alan Cheong, head of research at Savills Singapore. “The healthy list of bidders from this and recent tenders also show that developers are confident, that their balance sheets are strong enough to weather through concerns that the additional buyer’s stamp duty will lead to abject market conditions.”
The breakeven cost for the site, which is located near Kovan MRT Station, is likely to be between S$900 and S$1,000 psf, said Mr Lee Sze Teck, senior manager of research and consultancy at property firm DWG. He added that units could fetch between S$1,100 and S$1,300 psf.
Source : Today – 19 Jan 2012