SINGAPORE – A tender for a housing site near Redhill MRT has received a total of 10 bids, indicating healthy demand from developers, with the top bid of S$376.9 million coming from Tang Skyline, Urban Redevelopment Authority data showed today (Nov 12).
Located at Alexandra View, the 99-year leasehold site sits on an area of about 90,400 sq ft and has a plot ratio of 4.9. The total gross floor area works out to about 442,967 sq ft, of which about 5 per cent can be used as commercial space, which is allowed on the first storey of the development. The site can potentially be developed to an estimated 450 homes.
Tang Skyline’s bid works out to S$850.81 per sq ft per plot ratio (psfppr), narrowly beating the S$842.28 psfppr second-best bid from Singland Homes and UOL Venture Investments.
Mr Nicholas Mak, executive director of research and consultancy at property firm SLP International, said the provisional tender results indicated “healthy demand from developers, which is not surprising due to the attractiveness of the location of the site. It is adjacent to the Redhill MRT station and it takes only four MRT stops to reach Raffles Place MRT station.”
Mr Ku Swee Yong, chief executive of property firm Century 21, said: “The bidding was down to the wire and is a good sign for the market in the current weak property environment. Developers’ interest was high for the site due to the location.”
“The price is very attractive for the winner. The break-even cost for the developer is less than S$1,300 psf. The developer can be able to launch the project from S$1,500 psf onwards and still make a reasonable profit. With the additional commercial space on the first storey, it gives the developer an extra profit margin too,” he added.
“As the housing market is weak, buyers look to transportation amenities. Looking at other properties that sold well, such as Highpark Residences located next to Thanggam LRT Station and North Park Residences which is linked to Yishun MRT, this project is also next to an MRT and should sell well,” he said.