The top bid of $370.1 million for the 99-year leasehold site works out to about $565 psf on the land. Source: URA
The tender for a 2.17ha residential site at Tampines Avenue 10 (Parcel C) closed yesterday after attracting nine bids from property developers, said the Urban Redevelopment Authority (URA).
Bellevue Properties, a unit of City Developments Limited (CDL), submitted the top bid of $370.1 million for the 99-year leasehold site. This translates to about $565 psf per plot ratio (psf/pr).
Chinese developers Kingsford Development and Qingjian Realty were the next two highest bidders at $350 million and $345 million, respectively.
A spokesperson for CDL said that its bid for the site topped the tightly contested tender by a 5.7 percent margin over the second highest bid.
Launched for sale on 14 March under the confirmed list of the first half 2017 Government Land Sales Programme, the site could yield about 715 homes.
Nearby amenities include Courts Megastore, Giant Hypermarket and IKEA Tampines. There are also various schools within the vicinity, including United World College of South East Asia (East Campus) and Temasek Polytechnic.
“Although nine bidders is a good turnout, it is less than expected and this could possibly be due to bidders being drawn to the Stirling Road site as well as the Lorong 1 Realty Park parcel, which are more attractive sites,” said Ong Teck Hui, National Director, Research & Consultancy at JLL.
Despite this, he noted that the top bid is 17 percent higher than the $483 psf/pr paid for The Alps Residences site in April 2015, and is almost similar to The Santorini’s land price of $562 psf/pr, awarded in July 2013 before the effects of the Total Debt Servicing Ratio were felt.
“This shows that the outlook of the top bidder is for prices to at least remain stable or turn upwards when the project is launched. The average selling price of nearby projects such as The Santorini and The Alps Residences is $1,070 to $1,090 psf,” revealed Ong.
Said CDL’s spokesperson: “In the event that we are awarded the site, CDL will explore a condominium development of about 15 storeys with about 800 units. All units are expected to enjoy a North-South orientation and the development will also include a childcare centre on site.”
A decision on the award of the tender will be made after the bids have been evaluated, said the URA.