$408 million top bid for Clementi GLS plot

A 99-year leasehold condominium site along Jalan Lempeng has attracted a top bid of $408 million in an eight-cornered bidding session among developers.

IOI's property unit, Multi Wealth (Singapore) Pte Ltd, was the top bidder for the residential land parcel, offering $554.41psf ppr, 13% higher than the next highest bid of $490.50 psf ppr by joint bidders UOL Venture Investments Pte Ltd, Singapore Land's SL Development Pte Ltd, and Kheng Leong unit Russville Pte Ltd.

The lowest bid of $260.1 million was put in by Soilbuild Group Holdings Ltd, translating to $353.44psf ppr.

Highlighting that the number of bids was within expectations, Lee Sze Teck, senior manager of research and consultancy at DWG, said: "The level of interest and price level indicate that developers think that demand in the mass market segment is still robust."

Mr Lee said the Clementi estate has not had a condominium project launch for many years and the site is likely to benefit from pent-up demand from residents residing in Clementi. He cited the recent DBSS project, Trivelis, as a "good example".

Credo Real Estate executive director Ong Teck Hui agreed, saying: "As expected, the more attractive GLS (government land sales) residential sites will draw more bidders with some being prepared to bid more optimistically than others.

"The subject site is a reasonable distance from Clementi MRT station, the bus interchange, and the amenities in Clementi Town Centre."

He added that there are relatively fewer GLS residential sites available in the west compared to other locations, especially the north-east and east where most of the tendered sites were located.

Consultants estimate the break-even point for the future development to be between $950 and $1,000psf and the selling price would likely be around $1,200 to $1,300psf.

With a total site area of 262,828.6sqft, the plot with a maximum plot ratio of 2.8 times can be built up to 735,920.1sqft and yield about 685 apartment units.

Source: The Business Times

Click on link below to read our previous post on this GLS tender.
http://www.sgproptalk.blogspot.com/2011/11/three-more-gls-sites-out-for-sale.html

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