Hao Yuan submits highest bid of $441 mil for Bernam Street GLS site

SINGAPORE (EDGEPROP) - The Government Land Sales (GLS) site on Bernam Street attracted four bids at the close of the tender on September 5. The top bid of $440.9 million came from Chinese developer Hao Yuan Investments, and translates to a land cost of $1,463 psf per plot ratio (psf ppr). Desmond Sim, CBRE head of research for Southeast Asia says the top bid is "not surprising" as the developer's last residential project is the 736-unit Queens Peak, with the 99-year, leasehold site purchased in a GLS tender in June 2015.
The second highest bid came from Hongkong Land and MCL Land, with Far East Organization in third place followed by Chinese developer CSC Land and partners, notes Sim.

Bids received for the GLS site on Bernam Street

Source: URA
Based on the bid price of $1,463 psf ppr submitted by Hao Yuan, Christine Li, Cushman & Wakefield (C&W) head of research for Singapore and Southeast Asia, estimates the breakeven price for the new project to be about $2,100 psf, with selling price of around $2,430 psf, assuming a 15% profit margin.
“Developers could have taken note of the encouraging sales at the nearby Sky Everton,” says Li. The 262-unit, freehold project saw 160 units sold within a month of its launch in June this year. Based on caveats lodged to date, the average transacted price achieved at Sky Everton was around $2,541 psf, she adds.
Nearby 99-year leasehold private residential properties in the Tanjong Pagar area that could have been used as references by bidders include Skysuites @ Anson and Altez, where median transacted prices from January to August 2019, were $2,066 psf and $2,247 psf respectively, notes Nicholas Mak, ERA Realty head of research & consultancy.
Nearby 99-year leasehold private residential properties in the Tanjong Pagar area that could have been used as references by bidders include Skysuites @ Anson and Altez (pictured on the left) [Photo: Samuel Isaac Chua/EdgeProp Singapore]
The most recent launch of a 99-year leasehold condo in the vicinity was One...