Kaeden Ong

Residential site at Prince Charles Crescent attracts 7 bids

Posted by Kaeden Ong on 17th April 2014 in Blog

The tender for a residential site at Prince Charles Crescent (Parcel B) closed on Wednesday after attracting seven bids, said the URA.

Launched for sale on 28 February, the land parcel measures 24,964.3 sqm and has a gross floor area (GFA) of 52,426 sqm.

The top bid of $463.1 million was jointly submitted by UOL Venture Investments and Kheng Leong Company. This translates to $8,833 psm on the GFA.

Meanwhile, a consortium comprising Verwood Holdings, Intrepid Investments and Garden Estates offered the second highest bid of $440.2 million, while the lowest came from First Changi Development at $372.6 million.

Desmond Sim, Research Head for CBRE Singapore said: “The participating developers seem to share the same sentiments about the residential market based on the number of bids put in and the narrow bid margins. The top bid of $821 psf/ppr is about 15 percent lower than the winning bid for the neighbouring site which was awarded in September 2012. This is likely due to developers adjusting to a softening market as shown by the tapering of new sales.

“Furthermore, there are about 720 unsold/unlaunched units in the vicinity which could have restrained developers’ bid prices. Nevertheless, the winning bidder will be able to launch the project at a later time frame. The lower land price also extends flexibility to the winning bidder in determining the final product price.”

Offered on a 99-year lease, the site is expected to yield 655 units.

URA said a decision on the award of the tender will be made after the bids have been evaluated.

Credits: Property Guru

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