Eleven bids were received for the site at Perumal Road, near Farrer Park MRT station at the tender that closed yesterday. Low Keng Huat Ltd put in the top bid of $174.08 million ($1,000.71 psf per plot ratio). The bid was 4.4% higher than the next highest bid of $958.28 psf per plot ratio from China Construction (South Pacific) Development. Allgreen Properties came in third with a bid of $161.5 million ($928.4 psf per plot ratio).
Christine Li, director of research at Cushman and Wakefield, notes that out of the 11 parties who tendered for the site, nine out of the 11 bidders bid higher than the top bid for the nearby site (Sturdee Residences) in March 2015. Even the winner of the Sturdee Residences came in at 8.25% higher than the bid placed two years ago (SL Capital bid $786.92psf ppr in March 2015 compared to $851.88psf ppr in the tender closing today)
Desmond Sim, Head, CBRE Research, Singapore and South East Asia, says, “The shortage of residential land sites is being keenly felt by developers, going by the tender results of the first GLS land tender for the year. Developers are clearly looking to replenish their depleting inventory and the Perumal plot offers the added bonus of a small size and therefore an affordable quantum of $174 million. The site benefits from its proximity to transport nodes – the Dhoby Ghaut Interchange is only two stops away. Other amenities nearby include the relatively new One Farrer Hotel, Farrer Park Medical Hospital and City Square Mall.”
The parcel at Perumal Road is zoned for residential with commercial on the first storey. It had been launched for sale under the Confirmed List in November 2016 under the 2H2016 Government Land Sales Programme.