CNA : Sengkang condo land parcel sees top bid of S$200.5m

Sengkang condo land parcel sees top bid of S$200.5m
By Millet Enriquez, Channel NewsAsia | Posted: 04 February 2010 2153 hrs

SINGAPORE: Developers still appear hungry for land that can be used for condominium development.

A tender for a land parcel in Sengkang saw robust bidding, with the top offer coming in at over S$200 million.

Industry experts said it is a sign that appetite among developers to snap good sites is currently on a high.

The site at Sengkang West Avenue and Fernvale Link received bids from 10 developers.

Sunmaster Holdings submitted an offer of S$200.5 million, more than 2.5 times the minimum bid of S$70 million, for the 16,998.8 square metre site.

The price translates to S$365 per square foot (psf) for the land parcel launched by the Housing and Development Board (HDB) on a 99-year lease.

The next highest bid came from Tuas Hi-Tech Park, with a bid of S$177 million. The lowest bid of S$115.6 million was by Lippo Estates.

The HDB said it will evaluate the provisional results and the tender will be awarded in the next two weeks.

Industry observers said the top bid was very bullish. Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the breakeven cost would be about S$730 to S$760 psf.

Colliers said the top bid reflected the optimistic sentiment of developers. In 2009, three other residential sites received bids that were higher than S$200 million. - CNA/vm