Upper Serangoon mixed-use site draws top bid of S$276.8m
AN AGGRESSIVE bid from a Hong Kong heavyweight emerged tops in an 11-way tussle for a 99-year leasehold site in Upper Serangoon set to yield 340 homes as well as commercial space.
The bid by Asset Legend, which is controlled by billionaire Li Ka Shing’s Cheung Kong Holdings, was for about $276.8 million, or $848.8 per sq ft per plot ratio (psf ppr) - 15.3 per cent higher than the next highest offer of $736.1 psf ppr by Sustained Land’s SL Capital Ventures.
A tie-up between City Developments and Hong Leong subsidiaries – Verwood Holdings, Intrepid Investments and TID Residential – came in third at $719.5 psf ppr. The lowest bid of $529.7 psf ppr came from Koh Brothers’ KBD Ventures.
The roughly 10,000 sq m site can yield about 340 homes, with commercial units on the first storey. Kovan City, Heartland Mall and Kovan MRT station are nearby.
Market watchers found the top bid bullish, given a nearby commercial and residential site at Meyappa Chettiar Road had in August sold for $775.2 psf ppr. The gap between top and second for that site was only some 2.4 per cent, said JLL head of South-east Asia research Chua Yang Liang. (The gap this time round) is rather surprising especially in the light of current market sentiment, said Dr Chua.
Still, observers hailed the strong turnout as an affirmation of confidence in Singapore’s long-term growth.
Land bids so far have been quite aggressive, which is a good sign for the market. There’s still a lot of interest in good sites near MRT stations, said Rodyk & Davidson partner Lee Liat Yeang.
The top bidder could also have factored in a premium for the site with the view that the Government could start to lift cooling measures affecting private residential properties in the second half of next year, said R’ST Research director Ong Kah Seng.
Residential prices for the site could pan out to $1,300 to $1,400 psf, considering nearby Kovan Regency has achieved average prices of $1,200 to $1,300 psf in 2012 and last year, said Dr Chua.
The site will be the first Government Land Sales (GLS) site to come under new requirements to develop using prefabricated pre-finished volumetric construction (PPVC). This involves assembling whole rooms or apartment units that are manufactured off-site, and is meant to raise productivity in the construction sector.
As this is a new move, the economies of scale have yet to be tested and the breakeven price for this project could be higher as it is the first adopter of this new requirement, said ERA key executive officer Eugene Lim.
While Asset Legend has featured in few GLS tenders to date, Cheung Kong Holdings’ Best Desire Investments placed bids for the Meyappa Chettiar and Lorong Puntong sites in the second half of this year.
Cheung Kong’s projects here include The Vision in the West Coast area, Thomson Grand in Upper Thomson, Costa Del Sol in Bayshore and Cairnhill Crest. It has also developed Marina Bay Suites and Marina Bay Residences jointly with Hongkong Land and Keppel Land.
The land parcel, measuring 10,097.1 sq m (108,685 sq ft), was offered for sale on a 99-year lease term.
Located within an established residential area, residents of this upcoming development can dine at popular eateries at Upper Serangoon Road and shop at Heartland Mall and NEX. Sports and recreation facilities are only a short drive away at Hougang Stadium, Swimming Complex and Sports Hall.
CHOICE LOCATION AND GOOD ACCESSIBILITY
Located within an established residential area, the land parcel is easily accessible via major roads, expressways and Kovan MRT Station.
WIDE ARRAY OF AMENITIES
Shopping and Dining
Residents can dine at popular eateries at Upper Serangoon Road and shop at Heartland Mall and NEX.
Sports and Recreation
Sports and recreation facilities are only a short drive away at Hougang Stadium, Swimming Complex and Sports Hall.
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