http://www.straitstimes.com/premium/...chers-20120921
$516m bid for Redhill site stuns market watchers
It is highest price paid for 99-year condo site near the MRT station
Published on Sep 21, 2012
By Amanda Tan
A BULLISH bid of more than half a billion dollars for a Redhill residential site has left market watchers stunned.
The site attracted several big players but none matched the knockout price offered by a consortium comprising Wingstar Investment, Metro Australia Holdings and Maxdin.
They lodged an offer of $516.3 million, or $960 per sq ft per plot ratio (psf ppr), for the 99-year leasehold site in Prince Charles Crescent.
Experts had tipped a top offer of $950 psf ppr, with most expecting bids well below that.
Wingstar is a unit of Wing Tai Holdings, which has projects like Le Nouvel Ardmore and Nouvel 18 in the posh Ardmore Park area.
Metro Australia is owned by local firm Metro Holdings, while Maxdin is part of United Engineer's Greatearth Holding.
Next up was a joint bid from Intrepid Investments, Verwood Holdings and Hong Realty (Private), which lodged $508.9 million, or about $947 psf ppr.
Sherwood Development, a unit of Keppel Land, was third with a bid of $488.2 million, or $908 psf ppr. Plan Achieve was the lowest of the eight bidders with $433.2 million, or about $806 psf ppr.
The tender for the 23,785 sq m site, which could yield about 590 units, closed yesterday.
It was on the reserve list of the Government Land Sales programme. In July, the Urban Redevelopment Authority accepted an application from a developer to put the site on sale.
Unlike confirmed sites which are sold regardless of interest, developers must first make a minimum acceptable bid for reserve list sites.
Mr Nicholas Mak, SLP International's research head, noted the "substantial housing supply in the area".
Two other residential sites - at Alexandra and Jervois roads - have been sold in the past 10 months. The sites could yield a total of about 690 units.
Two other plots nearby that could yield a total of about 980units are on the reservelistfor this half of the year.
"This could indicate that the Government is trying to stabilise the housing prices in the area," Mr Mak said.
He pointed out that the winning bid for the Redhill tender is the highest land price paid for a 99-year-leasehold condominium site near the Redhill MRT station.
It is also 9 per cent higher than the land price that Singapore Land paid for its site at nearby Jervois Road, Mr Mak noted.
"The number of bids received shows strong interest from the developers and their optimistic sentiments towards Singapore's mid-tier private housing price," he added.
Mr Lee Sze Teck, Dennis Wee Group's senior manager of training, research and consultancy, said the site is near the prime Jervois area, schools like Crescent Girls' School, and a short drive from town. It is also has a regular shape, which helps designers.
He estimated the selling price of the future project to be between $1,600 and $1,650 psf.
[email protected]
Reply With Quote
Originally Posted by radha08
