Residential site at Clementi Avenue 1 attracts 6 bids

A residential site at Clementi Avenue 1 has attracted six bids, said Urban Redevelopment Authority (URA) said on Wednesday (Dec 9).

The top bid came from a consortium comprising UOL Venture Investments and Singland Homes, which offered S$302.1 million. This translates to about S$6,620.21 per sqm. Oxley-Lian Beng Ventures was the second-highest bidder, at S$276.201 million.

The 140,339 sq ft site can yield a maximum Gross Floor Area of 491,185 sq ft, or an estimated 460 to 500 housing units.

Mr Desmond Sim, head of CBRE Research (Singapore and South East Asia) said the number of bids reflects the need for developers to beef up their land bank.

SLP’s executive director and head of research and consultancy, Nicholas Mak said: “We expected more than 10 bids because this site is located within the popular Clementi town and there is an absence of competition from other new launches in the neighbourhood.”

He added: “Some developers may be reserving their resources to bid for the residential sites that would be announced in the new GLS (Government Land Sales) programme for H1 2016. As a result, the participation rate in today’s tender is moderately low.”

Analysts estimate the breakeven prices for the residential space in the new condominium to be developed on the site to range from S$1,100 psf to S$1,150 psf.

Source : Channel NewsAsia – 9 Dec 2015

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