$163m top bid in 8-way tussle for Upper Changi site

Straits Times: Thu, Oct 20
A RESIDENTIAL plot at Flora Drive in Upper Changi has attracted a top bid of $163 million in a eight-way tussle that indicates renewed interest among developers for the right site. Koh Brothers’ unit Realty Consortium topped with an offer of $361…
A RESIDENTIAL plot at Flora Drive in Upper Changi has attracted a top bid of $163 million in a eight-way tussle that indicates renewed interest among developers for the right site.

Koh Brothers’ unit Realty Consortium topped with an offer of $361 per sq ft per plot ratio (psf ppr) for the 3ha parcel.

That beat estimates of between $300 and $350 psf ppr when the 99-year leasehold site was launched in August and was 11 per cent over the price of an adjacent site sold in June that drew only four bids.

Hong Leong Group’s unit Tripartite Developers was second with $147.6 million or $327 psf ppr, edging out Qingjian Realty’s $147.58 million.

EL Development and MCL Land both put in the lowest bid of $130 million – 20 per cent below the top bid.

Experts say the level of interest and bids show that developers are getting a taste for residential sites again.

CB Richard Ellis Research executive director Li Hiaw Ho noted that the site is near the Changi Business Park, Changi Industrial Park and the airport, all with a high number of expatriate workers.

The upcoming Singapore University of Technology and Design is only a few minutes’ drive away, he said.

Mr Li expects the break-even cost to range from $680 psf to $700 psf.

Units at the nearby 501-unit Hedges Park condominium, launched in April, have sold for between $800 and $950 psf, he said. About 65 per cent of the project has been sold and Mr Li expects the new project to be priced similarly.

Mr Ong Teck Hui, Credo Real Estate’s head of research and consultancy, noted that the positive response to the site follows encouraging data on new private home sales in September that could have piqued developers’ interest.

Developers sold 1,631 private homes last month, 21 per cent up on August.

‘(This) suggests firm underlying demand especially for mass market units. The bidders are obviously confident that demand can be sustained and would not be too dampened by the uncertain economic outlook,’ Mr Ong added.

ESTHER TEO

Source: The Straits Times © Singapore Press Holdings Ltd.

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