Bartley site draws top bid of $620.61 psf ppr

Published 31 March 2011
The Business Times
By Kalpana Rashiwala

Bid by Hong Leong, CityDev, TID was 0.8% higher than next highest bid

A PARTNERSHIP between Hong Leong Holdings, City Developments and TID yesterday emerged as the top bidder for a 99-year leasehold private condo site next to Bartley MRT Station.

Results of state tenders for 99-year private residential sites

Results of state tenders for 99-year private residential sites

Its bid of $413.27 million, or $620.61 per square foot of potential gross floor area, was just 0.8 per cent higher than the next highest bid, from Keppel Land.

The tender drew eight bids. The lowest bid from Plan Achieve Limited was $391.95 per square foot per plot ratio (psf ppr).

The top bid was the second highest for a residential plot on the Government Land Sale Programme since the property market recovered in 2009, after the plot near Bishan MRT Station that CapitaLand clinched in February for $869 psf ppr, says SLP International executive director Nicholas Mak. The Bishan plot drew 19 bids.

Market watchers also noted that the Bartley plot’s top bid was close to the $607 psf ppr that Qingdao Construction paid for a site next to Potong Pasir MRT Station in June last year. That site is now being developed into Nin Residence, which was launched in December at $1,250 psf on average. To date the 219-unit project is about half sold.

‘We expect units in the new Bartley residential project to fetch prices at about the same level,’ said CBRE Research executive director Li Hiaw Ho. He estimates Hong Leong’s breakeven cost could be around $1,000-$1,050 psf.

Analysts noted that the new project will be just an MRT stop away from nex mall.

It is also within two kilometres of popular schools, such as Maris Stella High and Maris Stella Primary, and Paya Lebar Methodist Girls’ Primary School, which will boost the development’s draw for families with school-going children, says Mr Mak.

Others who bid at yesterday’s tender include Exclusive Partners (whose shareholders include Ho Lee Group) which bid $580 psf ppr; a Far East Organization-Frasers Centrepoint tie-up which offered $576.66 psf ppr; MCL Land ($530.10 psf ppr); Sim Lian Land ($465.53 psf ppr); and Allgreen Properties ($429.61 psf ppr).

Credo Real Estate executive director Ong Teck Hui summed up the outcome as ‘a mix of confident and cautious bidding’.

‘The top few bidders reflect confidence on market outlook and selling price while the lower bidders were obviously more cautious.’

All eyes are now on the April 7 closing for a state tender of a 99-year private condo site near Boon Keng MRT Station at the fringe of the city.

Hong Leong Group said yesterday evening that Hong Leong Holdings, CDL and TID plan to develop a condo with about 700 units on the Bartley Road site aimed at young families, professionals and upgraders.

‘The Circle Line strategically connects this site to a host of shopping malls and schools such as nex mall, Junction 8, Australian International School and Nanyang Junior College among others,’ the group said.

Separately, the Urban Redevelopment Authority yesterday launched the tender for a ‘white’ site next to Jurong East MRT Station. The tender will close on May 25.

The site has been triggered from the reserve list following a successful application by an unnamed developer which has agreed to bid at least $510 million or about $532.49 psf ppr.

The 99-year leasehold site can be developed into a project with a maximum gross floor area of 957,772 sq ft, of which at least 40 per cent has to be for office use.

The rest can be for any mix of commercial (such as retail and entertainment), hotel or residential use.

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