Bishan residential site attracts 9 bids

A residential site at Bishan Street 14 has attracted nine bids.

The top bid of S$505.1 million came from Allamanda Residential Development, a wholly-owned subsidiary of property developer CapitaLand.

That is about 3.1 per cent higher than the second bid jointly placed by Singland Homes, UOL Venture Investments, and ORIX Investment and Management.

Analysts had expected CapitaLand to submit a strong bid for the site, which is located adjacent to a plot where its Sky Habitat project is being built.

Donald Han, special advisor at HSR, said: “They would not want a competitor to get the site and undercut its pricing. It is about CapitaLand protecting its turf and protecting the pricing in the area.

“With this site, they will also be able to amalgamate different concepts with Sky Habitat.”

The top bid for the 99-year leasehold site works out to S$853 per square foot per plot ratio.

Analysts said this is almost 2 per cent lower than what CapitaLand paid for the Sky Habitat site in February 2011.

The Bishan Street 14 site spans 11,227.8 square metres and could potentially yield 645 residential units

Lee Sze Teck, senior manager of training, research and consultancy at DWG, said: “The estimated breakeven price could be between S$1,350 and S$1,400 psf and the probable selling price could be between S$1,650 and S$1,700 psf, which is similar to Sky Habitat’s selling prices.”

The site is located near the Bishan MRT station and Bishan bus interchange, as well as a range of amenities, including schools and shopping malls.

Source : Channel NewsAsia – 29 Nov 2012

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