Lor Lew Lian housing site gets S$321 million top bid

SINGAPORE — A private housing site near the NEX shopping mall in Serangoon attracted eleven bids at the close of tender today (Nov 5), with the top bid of S$321 million submitted by a consortium comprising City Developments (CDL) unit Verwood Holdings, Intrepid Investments and TID Residential, the Urban Redevelopment Authority said.

The 99-year leasehold site in Lorong Lew Lian sits on about 150,700 sq ft and has a maximum permissible gross floor area of about 452,138 sq ft. It was launched for sale on Oct 1 from the Reserve List of the Government Land Sales (GLS) programme for the second half of this year.

Mr Nicholas Mak, executive director of Research & Consultancy at SLP International Property Consultants, said the number of bids indicated healthy demand from developers.

“One possible reason for the relatively high number of bids is the attractive location of this land parcel in the North-East region. It is near the Serangoon MRT Station, which is an interchange station, and the NEX mall, which is a regional shopping mall,” he said.

“Furthermore, some developers may wish to replenish their land banks given the more subdued markets and the absolute price quantum of this land parcel might be within a range of quite a few large-sized developers and consortiums,” he added.

The top bid translates to nearly S$710 per sq foot per plot ratio, beating the second best bid from UOL Venture Investments and Singland Homes of S$692 psfppr by just 2.6 per cent.

Mr Ku Swee Yong, chief executive of property firm Century 21, said the CDL and UOL groups know the area and its market dynamics very well, having recently developed projects in the Bartley neighbourhood just one MRT station away.

“There is no other major condominium project in the area that is not launched for sale yet. It is very likely that the Government will award this tender to the top bidder. Therefore at this land price of S$709.97 psfppr, the estimated breakeven price is about S$1,100 psf to S$1,150 psf,” Mr Mak added.

“In the event that we are awarded the site, CDL will explore a condominium development of between 12 and 13 storeys with over 500 units. Apartments on the higher floors will enjoy good views across the landed housing enclave,” CDL said in a statement after the provisional tender results.