Land parcel in Sembawang sees highest bid of S$131.7m

Developers MCC Land has put in the top bid of S$131.7 million for a land parcel at the corner of Sembawang Road and Canberra Drive.

The bid works out to S$387 per square foot per plot ratio.

The second highest bid from SP Setia International came in at S$122.6 million.

Nam Hee Contractor and OPH Marymount submitted the third highest bid of S$111 million.

The lowest bid of S$85 million came from Frasers Centrepoint.

All in, the Housing and Development Board received seven bids.

Analysts said projects at the site would have a breakeven cost of between S$650 and S$750 psf, with the units possibly selling at between S$700 and S$820 psf.

Research Director at Colliers International, Tay Huey Ying, said the bids showed developers were still keen on land banking, with the prices reflecting an optimistic sentiment.

“It still trends on the bullish side considering the potential influx in supply of homes as a result of the ramped-up 2H 2010 Government Land Sale programme,” said Tay.

CB Richard Ellis Research executive director, Li Hiaw Ho, added that the site’s good response was helped by the location.

“The site is situated at the junction of Sembawang Road and Canberra Drive, surrounded by greenery and landed estates. It is also close to Sembawang Shopping Centre and is not far away from Sembawang MRT Station, Sembawang Interchange and Sun Plaza,” said Li.

The site was put on sale in April, with 290 units expected from any proposed development on the site.

Source : Channel NewsAsia – 8 Jun 2010

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