SPH & Kajima places top bid of $1,132 mil for Upper Serangoon Road site

By Michael Lim / The Edge Property | June 13, 2017 5:50 PM SGT
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Updated, June 19, 2017, 9:35 a.m., to add consultants' responses to the top bid as published in The Edge Property Pullout, Issue 784 (June 19, 2017) of The Edge Singapore.
Elara 1 and Callisto 1, entities linked to Singapore Press Holdings and Kajima Development, have submitted the top bid of $1,132 million, which translates into $1,181 psf per plot ratio, among 12 bidders for a 2.54ha (273,403 sq ft) mixed-use development site at Upper Serangoon Road (below), according to provisional tender results released by sales agent HDB. SPH’s bid is 1.27% more than the second highest bidder, Far East Civil Engineering and Sekisui House, who submitted $1,117,777,777 ($1,166 psf per plot ratio) for the site.
The 99-year leasehold mixed commercial and residential site, has a gross plot ratio of 3.5 and a maximum gross floor area of 89,043 sq m (958,458 sq ft). The site could potentially yield an estimated 825 residential units and with an estimated 15,000 sq m (161,460 sq ft) of commercial space. According to tender details from HDB, the winning developer also has to include a community club with Gross Floor Area of 6,000 sq m (64,584 sq ft) and a neighbourhood police centre with Gross Floor Area of 2,190 sq m (23,573 sq ft).

The other bidders were Guoco Group’s First Meyer Development and GLL A which came in third with their bid of $1,060 million ($1,105 psf per plot ratio). The lowest bid came from Soilbuild Group Holdings, who offered $774,488,000 ($808 psf per plot ratio).
Land Parcel at Upper Serangoon Road for Mixed Commercial & Residential Development
Source: HDB
Desmond Sim, head of CBRE Research for Singapore and South East Asia, says the aggressive bids are a testament to developers’ hunger for sites, as well as the site being the epicentre of the up-and-coming Bidadari estate. The site is also the sole mixed-development site released under the Government Land Sales programme in 2H2016 and the first land parcel for private housing at the new estate.
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“Based on the top bid, the developer of this mixed development could be aiming to launch the residential units at above $1,700 psf from late-2018 onwards,” says Nicholas Mak, head of research and consultancy at ZACD. “If this [happens], it would set a new record price for 99-year leasehold apartments in this location.”

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