Flora Drive residential site draws highest bid of S$163m

The tender for a Government Land Sale at Flora Drive closed on Wednesday with a top bid of S$163 million from Realty Consortium.

The company is understood to be part of Koh Brothers Development.

A total of eight bids were received with the lowest coming in at S$130 million.

Tripartite Developers and Qingjian Realty (South Pacific) Group put in the second and third highest bids of $147.6 million and S$147.58 million respectively.

Li Hiaw Ho, Executive Director, CBRE Research noted that the top bid of $163 million or $361 per square foot per plot is about 11 per cent above the price of the adjacent leasehold site which was sold in May 2011.

He added that the top bid price translates to a breakeven cost of about $680-$700 psf.

Within the Flora Drive vicinity, units in The Gale and Ferraria Park were sold at $900-$1,050 psf in the August-September 2011 period. Both are freehold projects.

Mr Li noted that units in the 99-year leasehold Hedges Park condominium, also within the vicinity, have been marketed at $800-$950 psf since April 2011. To date, about 65 per cent of the 501-unit project are said to have been sold.

Mr Li said it is likely that units in the new project will be priced at similar levels.

Source : Channel NewsAsia – 19 Oct 2011

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