Toa Payoh residential site draws 14 bids

A residential site in Toa Payoh drew 14 bids at the close of the auction on Thursday (Jun 18), indicating strong demand from developers for sites in mature housing estates.

The Housing and Development Board (HDB) said the 12,154.6 square metre, 99-year leasehold site at the junction of Lorong 6 and Lorong 4 Toa Payoh attracted a top bid of S$345.86 million from a group that includes Evia Real Estate, Greatearth and Malaysia’s Gamuda Bhd.

This works out to around S$8,130 per square metre of gross floor area, or about S$755 per square foot.

The site can yield around 535 private residential units. Alternatively, developers may, with prior written approval, build a mix of flats and strata landed houses.

Mr Desmond Sim, head of CBRE Research for Singapore and Southeast Asia, said the strong demand was “unsurprising” given the site’s location within a well-established mature estate with very few private residential projects. The site is also within walking distance of the Braddell MRT station.

JLL’s head of research in Southeast Asia Chua Yang Liang said the gap between the winning bid and the next highest is only 1.1 per cent. That is the closest gap since the second half of 2014, when a site at Choa Chu Kang Drive was awarded to Sim Lian Land at a margin of 2.2 per cent over the next bidder, said Dr Chua.

HDB, as the Government’s land sales agent, had launched the site for public tender on Apr 29.

A decision on the award of the tender will be made at a later date after the bids have been evaluated, HDB added.

Source : Channel NewsAsia – 2 Jun 2015

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