View of the land parcel at Jiak Kim Street. (Photo: URA)
Two residential plots in Jiak Kim Street and Fourth Avenue attracted a total of 17 bids with the combined top bid amounting to nearly $1.51 billion, after the Urban Redevelopment Authority (URA) closed the tender for both Reserved List sites on Tuesday, 5 December.
The 13,481.7 sq m land parcel in Jiak Kim Street drew 10 bids. Compared to the minimum bid price of $689.35 million, FCL Residences Pte Ltd submitted the highest offer of $955.41 million or $18,649 psm based on its maximum permissible gross floor area (GFA) of 51,231 sq m.
The 18,532.2 sq m plot in Fourth Avenue saw seven bids. In comparison to the minimum bid price of $448.8 million, Allgreen Properties submitted the top price of $552.96 million or $16,576 psm based on its GFA of 33,358 sq m.
“The strong showing and competitive bidding at the top end for both Jiak Kim Street and Fourth Avenue site clearly reflect the bidders’ confidence in a recovering private residential market amid the positive economic outlook,” said Tricia Song, Colliers International’s Research Head for Singapore.
Both 99-year leasehold plots are zoned for residential, but the developer is allowed to build commercial space on the 1st level of the Jiak Kim Street site.
In particular, Song estimates a break-even price of $2,400 to $2,450 psf and an average price of $2,600 to $2,700 psf for the larger site. That for the Fourth Avenue plot is around $2,200 psf, with an average selling price of $2,400 to 2,500 psf.
Meanwhile, JLL’s Research Head for Singapore Tay Huey Ying noted that the batching of tender closings has helped spread competition as each site attracted a different set of bidders. She also pointed out that home builders from the city-state have trumped their overseas rivals for both plum sites.
“Local developers continue to maintain their hold on the prime district market, pipping foreign developers such as China’s CSC Land and Hong Kong tycoon Li Ka-Shing’s Japura Pte Ltd for the two sites at Jiak Kim Street and Fourth Avenue, respectively,” she added.