15 bids for hotly-contested Potong Pasir mixed-use site

SINGAPORE — A mixed residential and commercial site near Potong Pasir MRT Station attracted 15 bids at the close of tender yesterday, with the highest bid of S$471.6 million submitted by MCC Land.

The 99-year leasehold site at Upper Serangoon Road/Meyappa Chettiar Road sits on about 173,830sqf of land and has a maximum allowable gross floor area of 608,408sqf. About 685 homes and 53,820sqf of commercial space can be developed on the site.

The top bid by MCC Land, a unit of Chinese state-owned enterprise Metallurgical Corporation of China, translates to S$775.17 per square feet per plot ratio, Urban Redevelopment Authority data showed. It was 2.4 per cent above the next highest bid of S$756.73 psfppr from Best Desire Investments, while the lowest bid of S$401.01 psfppr was submitted by Tennessee Investments.

Analysts said the strong interest in the site, released from the Confirmed List of the first half 2014 Government Land Sales programme, was no surprise given its proximity to the Potong Pasir MRT Station.

“The hype surrounding the Bidadari redevelopment may have added to the attraction,” said Mr Ku Swee Yong, chief executive of property agency Century 21.

Despite the large number of bids, developers showed restraint, with analysts saying the top bid was right in line with expectations and neither bullish nor conservative.

Mr Ku estimated the break-even price for the project at S$1,200psf and selling prices of homes at S$1,400psf, in line with values for the area.