SINGAPORE (EDGEPROP) - Tenders for two government land sale (GLS) sites closed on May 25. The larger site is a 237,029 sq ft executive condominium (EC) site at Tengah Garden Walk, and the other is a 136,479 sq ft, 99-year leasehold site at Ang Mo Kio Avenue 1. (See: Joint venture partners CDL and MCL Land submit top bid for Northumberland Road GLS site)
The site at Ang Mo Kio Avenue 1 attracted 15 bids and the top bid of $381.38 million ($1,118 psf per plot ratio) was submitted by United Venture Development, a 60:20:20 joint venture (JV) between UOL Group, Singapore Land Group, and Kheng Leong.
The JV partners say they will develop a 24- or 25-storey project of more than 370 units, capitalising on the unblocked views towards Bishan-Ang Mo Kio Park and Lower Pierce Reservoir Park. “It is a timely replenishment for our landbank, given that Avenue South Residence and Clavon are more than 65% and 80% sold respectively,” says Jesline Goh, UOL chief investment and asset officer.
The new development will benefit from its proximity to Mayflower MRT station on the Thomson-East Coast Line which is slated to open in later this year.
“This optimistic top bid comes in above expectations, and at $1,118 psf ppr, the possible selling price for the residential units here when ready to launch could start from $2,000 psf to $2,100 psf,” says Leonard Tay, head of research at Knight Frank Singapore.
The second highest bid of $358.88 million came from Titus Residential SG, and it was closely followed by a joint bid of $353.33 million by Far East Civil Engineering, Fortune Harmony, and Sekisui House. Developers Hoi Hup Realty, Sunway Developments, and Oriental Worldwide Investments also submitted a joint bid of $335.9 million.
“Residential land for redevelopment in Ang Mo Kio tends to attract many bidders. For example, Thomson Impressions saw 18 bidders in 2014, The Panorama had 12 bidders in 2013, and Centro Residences drew 14 bids in 2007,” says Mark Yip, CEO of Huttons Asia.
Based on the number of bids and tendered prices, competition to secure this prime site was stiff, and “developers were forced to bid more than $1,000 psf per plot ratio to stand a chance of securing (the site)”, says Yip.
The EC site at Tengah Garden Walk attracted seven bids and a top bid of $400.32 million ($603 psf per plot ratio) from Taurus Properties SG. The company is believed to be a joint venture comprising City Developments Ltd and MCL Land.
The second highest bid of $400.19 million came from CSC Land Group (Singapore), followed by a $382.88 million bid from QJ-OS and Santarli Realty. Hoi Hup Realty and Sunway Developments also teamed up to submit a bid of $379.1 million.
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The Tengah area has not seen an EC launch before and is relatively untested ground for a new EC development, but the GLS site attracted a healthy level of participation from developers who will capitalise on the expected pool of HDB upgraders, says Yip.
According to Nicholas Mak, head of research & consultancy at ERA Realty, based on the top bid, this makes it the most expensive land rate for an EC land parcel and the development could be launched at about $1,200 psf, which is higher than the average launch prices of recently launched EC projects on the market.
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