TID beats eight others with highest bid of $155.7 mil for one-north Gateway site

SINGAPORE (EDGEPROP) - The one-north Gateway site received nine bids at the close of the tender on September 5. The top bid of $155.7 million was submitted by TID Residential, a unit of TID Pte Ltd (a joint venture between Japanese developer Mitsui Fudosan and Hong Leong Holdings). The bid price by TID translates to a land cost of $1,001 psf per plot ratio (psf ppr).
The nine bids received for the one-north Gateway site came as no surprise as it’s the smallest site on the Confirmed List, with the potential to yield about 165 units. “It’s a palatable development quantum which appeals to more developers,” says Tricia Song, Colliers International head of research for Singapore. The risk of not being able to sell out the units in the project within the five-year timeline is also reduced, she adds.

Bidders for GLS site at one-north Gateway

Source: URA
Song reckons the breakeven price for the new project to be in the ballpark of $1,500 to $1,550 psf. Assuming a minimum average unit size of 85 sq m for the new project, the developer could be looking at selling prices north of $1,600 psf, she estimates.
The adjacent project, one-north Residences, was completed in 2009, and prices of units in the 900 to 1,000 sq ft range, have changed hands at prices of around $1,500 psf, year-to-date in 2019, according to Colliers.
In fact, the last residential site to be launched for sale at one-north was the site next door, for the development of one-north Residences, the first condominium project in one-north. That was in 2005, says Desmond Sim, CBRE head of research for Southeast Asia. “The site is located near the one-north MRT station, which presents great accessibility options.”
The last residential site that was sold in one-north was in 2005, the site of one-north Residences next door (Photo: Samuel Isaac Chua/EdgeProp Singapore)
The healthy interest for the site at one-north also reflects “pent-up demand”, says...