Tender for Petir Road residential site receives top bid of S$177.4m

The Urban Redevelopment Authority (URA) has received nine bids at the close of a tender on Thursday for a residential site at Petir Road.

The highest bid of about S$177.4 million came from Wincheer Investment.

This was followed by Sim Lian Land and Kwan Hwee Investment, which both submitted a bid of around S$173.8 million.

The lowest bid came from Teambuild Land at S$103 million.

Real Estate consultancy CBRE Research said the tender for the land parcel, which is about 10 minutes’ walk from Pending LRT station, received a good response.

Leonard Tay, director of CBRE Research, said: “The quantum of the bids indicates that the developers are optimistic about the location of this site, given the sell-out of 429-unit Tree House condominium – adjacent to the subject property – during the second quarter of 2010.

“The top bid of S$177.4 million reflects S$345 psf/plot ratio and translates to a breakeven cost of S$680 psf to S$700 psf.”

He added that units in the new development will likely sell for above S$800 psf. The adjacent Tree House project was launched at an average S$830 psf in April 2010, while units at Mi Casa, a new project at Choa Chu Kang Avenue 3, were sold at S$700-850 psf in July-September 2010, Mr Tay said.

The Petir Road site has an area of some 22,744 square metres and a maximum permissible gross floor area of 47,763 square metres.

The site was launched for public tender on August 31 and has a lease period of 99 years.

URA said it will award the tender after the bids have been evaluated.

Source : Channel NewsAsia – 7 Oct 2010

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