A residential site (pictured) at Sims Drive attracted four bids when the tender closed on Tuesday, said HDB.

Launched for sale on 30 December 2013, the 23,900.1 sqm plot has a gross floor area (GFA) of 71,700.3 sqm and plot ratio of 3.0.

The top bid of about $530.9 million was submitted by GuocoLand’s First Changi Development. This translates to around $7,404 psm on the GFA.

Developer Sim Lian Land offered the lowest bid of $356 million, which is approximately 33 percent lower than GuocoLand’s tender price.

Offered on a 99-year lease, the site could be developed into a condominium project or flats. A combination of flats and strata landed houses can also be built with prior written approval. HDB noted that the site is expected to yield 900 homes. 

Desmond Sim, Head, CBRE Research, Singapore said: "The site is located about 300m from the Aljunied MRT station and within the Paya Lebar Sub-Regional Centre, an up and coming commercial hub. The bids demonstrate that developers are still hungry for land with good attributes such as established amenities and situated in a good location.
"In addition, CBRE observed that while land prices are affected by general market sentiments and specific site attributes, they are also a reflection of other considerations such as foreign labour crunch, and pre-fabrication requirements that have contributed to the rise in development cost." 

A decision on the award of the tender will be announced at a later date after the bids have been evaluated.

Image source: HDB


Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg


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