HDB receives 13 bids for Chestnut Ave residential site

The Housing and Development Board (HDB) has received 13 bids for the land parcel at Chestnut Avenue at the close of its tender on Wednesday.

The land parcel has a site area of 22,700 square metres, with a maximum allowable gross floor area of 47,670 square metres. It is set aside for condominium housing, with a lease period of 99 years.

Sunny Vista Developments and Hong Realty have jointly submitted the highest bid of S$143.68 million. This works out to S$280 per square foot (psf) per plot ratio, which is 131.7 per cent above the minimum bid price of S$62 million or S$120 psf/plot ratio.

Other bidders for the land parcel included Far East Square, Ho Bee Developments and Allgreen Properties. The lowest bid of S$77 million was put in by Frasers Centrepoint.

Leonard Tay, Director of CBRE Research, said the impressive 13 bids for the suburban site reflected “the renewed interest and the growing positive outlook among developers for mass market residential projects.”

He added: “The estimated breakeven price for a residential project based on a land price of S$280 psf/plot ratio should be around S$550-$580 psf. As such, the eventual selling price might be around S$650 psf to S$700 psf, when the project is ready to launch.

“Currently, resale prices of the nearby 99-year leasehold project Maysprings range from S$480-$600 psf, while 999-year leasehold and freehold projects such as The Linear, Hazel Park Condominium and Dairy Farm Estate range from S$560-S$650 psf.”

HDB said it will evaluate the bids and the tender will be awarded within the next two weeks.

Source : Channel NewsAsia – 19 Aug 2009

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