Tenders for 2 government land sale (GLS) websites closed on May 25. The larger website is a 237,029 sq ft exec condo (EC) site at Tengah Garden Walk, and also the other is a 136,479 sq ft, 99-year leasehold site at Ang Mo Kio Avenue 1.
The site at Ang Mo Kio Avenue 1 drew in 15 bids and also the leading quote of $381.38 million ($1,118 psf per plot proportion) was sent by United Venture Development, a 60:20:20 joint venture (JV) between UOL Group, Singapore Land Group, and also Kheng Leong.
The JV partners say they will certainly develop a 24- or 25-storey project of greater than 370 systems, capitalising on the unblocked views towards Bishan-Ang Mo Kio Park and Lower Pierce Reservoir Park. “It is a prompt replenishment for our landbank, considered that Avenue South Residence and also Clavon are greater than 65% as well as 80% sold respectively,” claims Jesline Goh, UOL chief investment as well as asset policeman.
The new growth will benefit from its closeness to Mayflower MRT station on the Thomson-East Coast Line which is slated to open up in later this year.”This positive top proposal is available in above assumptions, and also at $1,118 psf ppr, the possible selling price for the residential systems below when ready to launch might begin with $2,000 psf to $2,100 psf,” states Leonard Tay, head of study at Knight Frank Singapore.
The 2nd highest proposal of $358.88 million came from Titus Residential SG, and also it was very closely complied with by a joint quote of $353.33 million by Far East Civil Engineering, Fortune Harmony, as well as Sekisui House. Developers Hoi Hup Realty, Sunway Developments, and Oriental Worldwide Investments likewise sent a joint quote of $335.9 million.
“Residential land for redevelopment in Ang Mo Kio tends to draw in lots of bidders. For instance, Thomson Impressions saw 18 prospective buyers in 2014, The Panorama had 12 bidders in 2013, as well as Centro Residences attracted 14 proposals in 2007,” says Mark Yip, CEO of Huttons Asia.
Based upon the number of proposals and also tendered rates, competitors to protect this prime site was rigid, and “developers were forced to bid more than $1,000 psf per plot ratio to stand a chance of protecting (the site)”, claims Yip.