The site on Fernvale Road is close to The Seletar Mall.
A 99-year leasehold residential site at Fernvale Road received robust interest during the close of its tender on Tuesday (27 September), with 14 developers bidding for the site.
A consortium between Sing Development and Wee Hur Development submitted the highest bid of S$287.1 million, with China Construction (South Pacific) Development a close second at S$287.09 million. Allgreen Properties offered the third highest bid of S$286.9 million.
Kingsford Property Development submitted the lowest bid at S$223.23 million.
Desmond Sim, CBRE Research Head for Singapore and Southeast Asia, said the cutback in residential sites has positively reduced unsold stock, whetting the appetite of developers.
“This is reflected in the number of bids for this Fernvale plot, bolstered by the success of High Park Residences and coupled with the fact that the Perumal Road site is probably the only site left for sale for 2016,” he said.
In fact, the top three bids are extremely close, with a mere 0.007 percent difference between the top and third bid.
“This is an indication that these bidders share similar views on (the) pricing of the projects, as well as construction cost control,” he said. “Being able to control costs is a major factor, particularly for the top two bidders, as they are developers with a construction arm and would have come to terms with the costs associated with the PPVC (prefabricated prefinished volumetric construction) projects,” added Sim.
Launched on 16 August 2016, the 17,195.9 sq m site can yield 605 housing units. Looking ahead, Sim expects more residential sites to be released in the next Government Land Sales (GLS) sales programme to prevent land bids from escalating.
Cheryl Marie Tay, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories, email email@example.com