Monthly Archives: April 2014

Sims Drive housing plot draws just four bids

Sims Drive housing plot draws just four bids

Sims Drive Condo Site AnalysisMalaysian 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