Serangoon North housing site gets buillish top bid of S$446.3 million

SINGAPORE — A housing site in Serangoon North Avenue 1 has drawn strong interest from developers, with units of Keppel Corp and Wing Tai submitting the joint top bid of S$446.3 million, Urban Redevelopment Authority data showed after the close of tender on Thursday (July 27).

The 99-year leasehold site, launched from the Confirmed List of the Government Land Sales (GLS) programme for the first half of 2017, sits on 185,022 sq ft. It has a maximum allowable gross floor area of 462,557 sq ft that can yield an estimated 505 homes. The top bid from Keppel unit Corson and Wing Tai unit Wingjoy Investment, which beat 15 others, translates to S$964.81 per sq ft per plot ratio.

Mr Nicholas Mak, Head of Research & Consultancy Department at investment group ZACD, said that while the site is quite far from the nearest MRT station and has an irregular shape, it has positive attributes including its location within the established Serangoon Garden landed estate. Chomp Chomp Food Centre, Serangoon Garden Market and Serangoon Garden Country Club are also nearby, as well as Rosyth School and Lycee Francais de Singapour.

“A total of 16 bids were submitted, which indicated a very healthy level of participation from the developers even though the subject site is not located within walking distance to the nearest MRT station and retail shops,” he said.

The top bid from Corson and Wingjoy was 6.6 per cent higher than the S$418.7 million second best bid submitted by FCL Residences, a Frasers Centrepoint unit.

“The top bid today can be considered to be very bullish and aggressive as it was about 16 per cent higher than the land price of the Serangoon Ville land parcel which was acquired yesterday by the Oxley-led consortium at S$835 psfppr (including estimated charges for intensifying the use of land and to top up the lease to a fresh 99 years),” said Mr Mak, referring to the latest en bloc acquisition.

Based on the top bid, the developer of this project would have to launch the residential units at above S$1,600 psf, which is significantly higher than the recent private condominium launches in the vicinity, he said.


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