The Urban Redevelopment Authority (URA) has awarded the tender for the residential site at Coronation Road to Athens Residential Development Pte. Ltd. The company submitted the highest bid in the tender for the site of S$366 million, about S$908.17 per square foot.
Tender for the residential site was launched on 28 March 2013 and closed on 20 June 2013. The land parcel was offered for sale on a 99-year lease term.
Athens Residential Development Pte Ltd is a unit of Capitaland.
Astor Properties Pte Ltd of Far East Organization put in the second highest bid of S$313.3 million.
Joesph Tan, executive director of residential at CBRE, said the 17 per cent difference between the top 2 bids illustrates CapitaLand’s confidence in the market.
Experts agree that the combination of the 99-year leasehold site’s prime location and the limited supply in the area was the main draw for developers.
The site is located in the prime Bukit Timah area and next to a Good Class Bungalow (GCB) area at Victoria Park.
It is also close to Farrer Park MRT station and reputable schools such as Raffles Girls Primary School and Hwa Chong Institution.
Property consultants said the number of bids received reflected developers’ bullish sentiment in the landed property segment.
Capitaland said in a statement that it plans to build semi-detached houses and bungalows on the 37,440.7 square metre site.
The development will be ready to launch around the second quarter of 2014.
Given the prime location, analysts said prices for semi-detached units in the new site could start from between S$4 million to S$6 million.