A residential site at Bedok South Avenue 3 attracted seven bids at the close of tender yesterday, with the top one of S$345.9 million coming from a consortium comprising FE Lakeside, Frasers Centrepoint’s FCL Topaz and Sekisui House Singapore.
The best bid translates to about S$534 per sq foot per plot ratio, the Urban Redevelopment Authority (URA) said. Mr Lee Sze Teck, senior manager of research and consultancy at property firm DWG, said the developers’ breakeven at that rate would be about S$900 to S$950 psf ppr. He estimated the selling price at S$1,100 to S$1,150 psf ppr.
“The bid reflects the developers’ confidence in the mass market and their view that if there’s a downside (to the market), it will be very short and they can hold out and launch near that price,” he added.
The 99-year leasehold site located near Tanah Merah Interchange was made available under the Confirmed List of the Government Land Sales Programme. Occupying nearly 2.9 ha, the site can yield about 595 condominium units.
The URA will award the tender at a later date.
Source : Today – 10 Feb 2012