More signs of apickup in residential property sector
A PLOT of land for condominium development at Chestnut Avenue, just off the Bukit Panjang public housing estate, drew some 13 bids - with the highest coming in at $143.7 million or $280 per square foot (psf).
The top offer by Sunny Vista Developments and Hong Realty is more than double the minimum bid price of $62 million that had triggered the tender.
The site - which was the first residential site to be triggered under the Reserve List since last October - was launched for sale by Housing and Development Board (HDB) on Jul 23.
Frasers Centrepoint submitted the lowest bid at $77 million, according to HDB's statement yesterday.
CBRE Research director Leonard Tay said the number of bids was "impressive" and reflected "the renewed interest and the growing positive outlook among developers for mass market residential projects".
Units of several big-name developers and construction firms - such as Allgreen Properties, Ho Bee Investment, Sim Lian Group and Teambuild - have entered bids for the 99-year leasehold plot, which measures about 244,000 sq ft and has a maximum gross floor area of 513,000 sq ft.
CBRE expects the project to yield about 450 units. Based on the top bid, the research firm estimated that the breakeven price would be $550-$580 psf, translating to a possible selling price of around $650-$700 psf.
Source: Today, 20 Aug 2009