Location of the land parcel at Serangoon North Avenue 1. (Photo: URA)
UPDATED: The tender for a residential plot at Serangoon North Avenue 1 closed on Thursday (27 July) after drawing 16 bids, said the Urban Redevelopment Authority (URA).
Corson and Wingjoy Investment, entities of Keppel Land and Wing Tai, submitted the top bid of $446.28 million for the approximately 185,022 sq ft site. This works out to a land rate of about $965 psf per plot ratio.
FCL Residences was the second-highest bidder with $418.7 million, followed by a joint offer of $417.2 million from Singland Homes and UOL Venture Investments.
“While Corson and Wingjoy lead by a clear 6.6 percent margin, the second to fourth highest bidders were within a 0.4 percent margin, reflecting the tight competition between the parties,” said Ong Teck Hui, National Director, Research & Consultancy at JLL.
“This shows that for those who are keen to secure a site, there is no choice but to bid aggressively under current market circumstances.”
Dr Lee Nai Jia, Head of Research at Edmund Tie & Co., noted that bidding was competitive due to the site’s proximity to Bidadari estate, which will catalyse growth in the area.
“Likely selling prices for the units in the proposed development are likely to range from $1,500 to $1,600 psf. As buyers’ sentiments continue to improve, we anticipate land bids to remain competitive,” he said.
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Launched for sale on 30 May under the first half 2017 Government Land Sales programme, the 99-year leasehold site in the mature Serangoon Garden neighbourhood will yield over 600 homes, said Keppel Land.
“We are confident that this development will see positive demand as there have been few new condominiums launched in recent times in the popular Serangoon Garden area,” said Ang Wee Gee, CEO of Keppel Land.
The Chomp Chomp Food Centre, Serangoon Garden Market and Nex shopping mall are located nearby. The future development will also appeal to families with school-going children as it is close to Rosyth School, Nanyang Junior College and the French School.
The URA will decide on the award of tender after evaluating the bids.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email firstname.lastname@example.org