Dairy Farm Rd residential plot attracts top bid
A partnership between First Shine Properties and Meadows Bright Development has placed the top bid for a 99-year-leasehold private housing site on Dairy Farm Road.
Their bid of nearly $244.32 million works out to $616 per sq
ft per plot ratio (psf ppr), ahead of earlier market expectations since the
launch of the site in July.
The top bid was 9.9 per cent higher than the next highest
bid of $560.49 psf ppr from UOL Group unit Secure Development.
The tender attracted nine bids in all, with the lowest from a partnership between Capital Development and ZACD Investments at just under $420 psf ppr.
The tender attracted nine bids in all, with the lowest from a partnership between Capital Development and ZACD Investments at just under $420 psf ppr.
First Shine Properties is a fully owned unit of
mainboard-listed Hock Lian Seng Holdings, which is involved in civil
engineering, property development and investment.
Meadows Bright has three shareholders, namely Sino Holdings
(S'pore), King Wan Development and Far East Distillers. Sino Holdings is a unit
of TA Corporation, which is involved in property and construction and was
listed on the mainboard late last year.
Based on the top bid, property consultants' estimates of the
breakeven cost for a new condo project range from $950 to $1,100 psf, and the
likely average selling price at $1,200 to $1,300 psf.
The Urban Redevelopment Authority had postponed the close of
the tender for the site by a week to give potential bidders more time to do
their sums following this month's introduction of a development control
guideline which stipulates that the maximum number of units in non-landed
private housing projects outside the central area will be capped based on an
average area of 70 sq m. Going by the formula, the Dairy Farm Road site can be
developed into no more than 526 units.
The 188,861.2-sq-ft site on Dairy Farm Road has a maximum
gross floor area (GFA) of 396,617.4 sq ft and a maximum building height of part
five storeys and part 15 storeys, subject to 140 m above mean sea level.
Property consultants noted that yesterday's top bid was 3.5
per cent lower than the $638 psf ppr that the nearby Hillview Avenue site
fetched in March.
The latest site is about 600 m from the future Hillview MRT
Station on the Downtown Line.
Others who bid at yesterday's tender include Han Chee Juan's
Teneriffe Development ($550 psf ppr), a Hong Leong Holdings-City Developments
partnership ($507.35 psf ppr) and a Fragrance-Aspial tie-up ($467.52 psf ppr).
Sim Lian Land offered $461.40 psf ppr. Far East Orchard
Limited joined forces with Frasers Centrepoint to bid $456.81 psf ppr.
Source: Business Times – 19 September 2012