Developer Oxley Rising has submitted the highest bid of S$158 million for an industrial site at Ubi Road 1.
The Urban Redevelopment Authority (URA) has closed the tender for the site after receiving 11 bids in total.
Oxley’s bid translates to about S$163 per square foot.
The next highest bid of S$146.5 million came from joint bidders Qing Quan and Qingdao Construction.
The over 34,000 square metre site was offered for sale in June this year on a 60-year lease.
CBRE Research said the overwhelming interest in the land parcel could be due to Singapore’s strong economic growth in the second quarter.
There has also been robust take-up of some 2.7 million square feet of factory space in the second quarter, which could have created more interest in the land.
CBRE said the top bid of S$169 per square foot per plot ratio is almost twice the winning bid for latest industrial sites in Ubi that were awarded.
A 60-year leasehold industrial site along Ubi Avenue 4/Ubi Road 2 was awarded to 3 Link Development in April 2008 for S$23.9 million or S$89 per square foot per plot ratio. In October 2008, another 60-year leasehold site along Ubi Avenue 4 was awarded to Sim Lian Land, which submitted the winning bid of S$26.3 million or S$85 per square foot per plot ratio.
The breakeven cost for this development is estimated to be about S$380-S$400 per square foot.
In the first seven months of 2010, upper floor strata-titled units in 60-year leasehold Vertex, located along Ubi Avenue 3, transacted for prices of between S$309 per square foot and S$409 per square foot, while the ground floor units sold for S$371 per square foot to S$550 per square foot.
URA said it will decide on the winning bidder at a later date.
Source : Channel NewsAsia – 11 Aug 2010