A condominium land site located on Bendemeer Road/Whampoa East has been awarded to United Engineers Developments, which submitted the top bid of S$543 million or S$8,332.87 per sqm (psm) based on gross floor area (GFA)
The 99-year leasehold land parcel, sized at 18,618 sqm or 200,404 sq ft, has a maximum permissible GFA of 65,163.9 sqm or 701,424 sq ft. The site, which went up for tender on Feb 23, can yield about 780 units.
Mr Li Hiaw Ho, executive director of CBRE Research, said: “The top bid of S$543 million or S$774 per sq ft (psf) per plot ratio reflects the developer’s confidence in this site because of its city-fringe location and proximity to an MRT station. The bid translates to a break-even cost of around $1,200 per sq ft.”
Mr Li added that units in Nin Residence, a condominium within the vicinity and near to Potong Pasir MRT Station, were sold at S$1,000 psf to S$1,400 psf in January to March this year.
“We expect units in this new project to be launched at around $1,350 psf – $1,400 psf,” he added.
Mr Li said recent land tenders have attracted less than 10 bids – a conservative figure in light of the oncoming land supply.
“This is probably because they are aware that 12 more residential sites, and more from the Reserve List if they are triggered, will be supplied by the government by June this year,” said Mr Li.
The Bendemeer land tender received a total of eight bids, with the lowest bid coming from Allgreen Properties at S$363.88 million.
The site is situated walking distance away from Boon Keng MRT Station along the Northeast Line and right beside Bendemeer Primary School.
Other schools near the site are St Andrew’s Junior and Secondary School, as well as St Andrew’s Junior College. Nearby shopping facilities include City Square, Serangoon Plaza and Mustafa Centre.
Source : Today – 8 Apr 2011