Segar Road site receives 5 bids

A land parcel at Segar Road received a total of five bids in a public tender that closed on Thursday.

The 20,834.1 sq m site, which was launched for sale on October 6, received the highest bid of $181.9 million from Grand Isle Holdings.

“The top bid of $181.99 million reflects $271 psf/plot ratio and translates to a breakeven cost of $570 psf to $590 psf,” said Mr. Joseph Tan, Executive Director for Residential at CB Richard Ellis.

“Given that Tree House – a new private condominium – was completely sold at an average price of $830 psf in Q2 2010, there will be a market for this new EC project if it is priced at a differential of 20 percent to 25 percent lower than Tree House. Nearby, units at Chestervale – an executive condominium that is now fully privatised – were sold at $500 psf to $540 psf in the resale market in the July-October period,” added Mr. Tan.

Other bidders include EL Development, which offered the second highest bid of $157.5 million, followed by a joint bid between Opal Star and Lum Chang Building Contractors, offering $128.3 million; Pinnacle Realty and Sim Lian Land, offering $120 million and $113 million, respectively.

With a maximum gross floor area (GFA) of 62,502.3 sq m, the site is proposed for an EC housing and could yield up to 570 units.

Meanwhile, the land parcel at Upper Serangoon Road was awarded to Kwan Hwee Investment at the tender price of $155.2 million.

The tender for the 20,000 sq m site, with a maximum GFA of 70,000 sq m, was launched on October 12 and closed on November 30. The site is proposed for public housing and could potentially yield up to 630 housing units.