Two Govt residential land sites draw top bids

While developers swarmed around residential sites in Cuscaden Road and Mattar Road, only one developer zeroed in on the large site at Silat Avenue.

A consortium of SC Global Developments, New World Development and Far East Consortium International lodged the top bid of $410 million for the Cuscaden Road site, which is near Orchard Road.

This translates to $2,377 per square foot per plot ratio (psf ppr) and trumped eight other bidders.

Its offer not only smashes all records for a residential government land sale (GLS) site but also surpassed market expectations of $1,800 to $2,300 psf ppr, said Ms Tricia Song, head of research for Singapore at Colliers International.

It exceeds the old GLS record of $1,733 psf ppr paid by Frasers Property for a Jiak Kim Street site by 37 per cent.

SC Global chairman and chief executive Simon Cheong noted that it is more than a decade since a residential GLS site was available near Orchard Road.

Consultants expect a break-even price of $3,100 to $3,300 psf, with selling prices for the new project from $3,300 to $3,700 psf.

ZACD executive director Nicholas Mak noted that the fact that all nine bids for the Cuscaden Road site were above $2,000 psf ppr "will give a shot in the arm for the land sale market, especially the en-bloc sale market".

The Mattar Road plot was also hotly contested with 10 bids, with the top offer of $223 million or $1,109 psf ppr from FSKH Development, a consortium of Hock Lian Seng Holdings, Keong Hong Holdings and TA Corporation.

Mr Mak estimates the break-even price for to be $1,700 to $1,800 psf.

The huge site in Silat Avenue in Kampong Bahru saw only one bid - from UOL, UIC and Kheng Leong Company at $1.04 billion or $1,138 psf ppr.

Mr Ong said the muted demand could be due to the large capital outlay and constraints posed by the presence of conserved buildings.