Sims Drive housing plot draws just four bids
Malaysian tycoon Quek Leng Chan has trumped his Singapore cousin, Kwek Leng Beng, at a state tender for a 99-year private housing site in Sims Drive.
His Singapore-listed GuocoLand bid $530.89 million or $687.88 per square foot of potential gross floor area for the nearly 2.4-hectare site fronting Sims Drive, Aljunied Road and Pan Island Expressway (PIE).
This was nearly 5.8 per cent higher than the No 2 bid – $502 million or $650.45 per square foot per plot ratio (psf ppr) – from a consortium comprising the Kwek family’s listed City Developments and unlisted Hong Leong Holdings, and TID.
In all, the tender drew just four bids, compared with 16 for a site in the vicinity fronting Geylang East Avenue 1 and next to Aljunied MRT Station.
The stronger interest in the earlier site was to be expected, said property consultants, given its relatively bite-size quantum – the top bid was $145.89 million and the maximum gross floor area allowed is roughly a quarter of that for the Sims Drive parcel. That top bid works out to a unit land price of $775.96 psf ppr.
An industry observer told BT that GuocoLand’s relatively lower bid – an 11.4 per cent discount to that for the Geylang plot – was to be expected, given the earlier site’s superior location and the fact that a smaller site typically attracts a higher psf ppr rate.
“Today’s tender outcome does not reflect a softening in the market in that area,” he added. “Whereas, what we saw two weeks ago for the Prince Charles Crescent tender was a shocker, with the winning bid of about $821 psf ppr being 14.5 per cent lower than the $960 psf ppr fetched for the next-door site two years ago.
“Based on that outcome, I had thought the highest bid for the Sims Drive land parcel could possibly come in below $600 psf ppr.”
GuocoLand Singapore group managing director Margaret Goh said that the group’s proposed scheme envisages a 19-storey condo project with about 800-850 “affordable compact-sized units, mainly one, two and three-bedder units”. The project will be launched probably by mid-2015.
This is the first time in seven years that the group will be acquiring a pure residential development site in Singapore. The last time was in 2007, when it clinched the Leedon Heights en bloc sale site – now being redeveloped into Leedon Residence.
The remaining bids at yesterday’s tender came from a Far East Organization, Frasers Centrepoint and Sekisui House consortium, $580.19 psf ppr; and Sim Lian Land, $461.27 psf ppr.
Source: Business Times – 29 April 2014