Fernvale Lane site receives top bid of S$245m

A residential redevelopment site at Fernvale Lane has received a top bid of S$245 million at the close of a public tender on Tuesday.

Only four bids were received for the executive condominium (EC) site.

The top bid came from Peak Living Pte Ltd, a subsidiary of Kheng Leong Group which is controlled by the family of tycoon Wee Cho Yaw.

FCL Tampines Court Pte Ltd/Keong Hong Construction put in the second highest bid of S$240.38 million.

The 21,999.90 square metre site has a maximum gross floor area of 76,999.65 square metres.

An estimated 770 residential units can potentially be built.

The top bid translates into a unit price S$295.60 per square foot (psf) of potential Gross Floor Area (GFA).

Nicholas Mak, executive director at the Research & Consultancy Department of SLP International Property Consultants, noted that the difference between the first and second bid was 1.9 per cent, the closest margin seen since the tender for another EC site closed in July 2011.

He added: “The fewer bidders in today’s tender as compared to the 10 bids received for the site at Punggol Central/Edgefield Plains which closed on 29 March 2012, could signify that developers are more selective in bidding for EC sites and prefer to bid for land parcels that are situated near MRT stations.

“In addition, the selective attitude of developers could also be due to the relatively large future supply of EC units (about 3,000 units) expected to be launched towards the end of 2012 and early 2013.”

Mr Mak said the top bid for the Fernvale Lane site could result in a breakeven price of S$590 to S$620 psf.

“The price difference between the first and last bidder was only 5.1 per cent, indicating that developers have similar expectations about the future selling price of EC in this location,” he said.

Source : Channel NewsAsia – 3 Apr 2012

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