Yishun mixed-use GLS plot draws S$185.1 million top bid

SINGAPORE — A mixed commercial and residential plot of land in Yishun attracted lukewarm interest from developers, with a joint bid by Northern Resi and Northern Retail of S$185.1 million beating four other bids at the close of tender today (Jan 13).

The 99-year leasehold site in Yishun Avenue 4 – the first Government Land Sales tender to close this year - has an area of about 105,055 sq ft, and a maximum allowable gross floor area of 294,156 sq ft based on a plot ratio of 2.8. The top bid translates to a unit price of S$629.24 per square feet per plot ratio and is less than 2 per cent higher than the second-best bid, Housing and Development Board data showed.

Ms Chia Siew Chuin, director of Research & Advisory at property firm Colliers International, said the tender price is within expectations, given the subdued state of the residential market.

“The level of interest garnered for this site is similar to that seen for the tender for the mixed commercial and residential site at Yishun Avenue 2/Yishun Central 1, which also attracted five participants when the tender closed in September 2013,” she said.

“The muted interest among the contenders in the current site is likely to have been the result of weakened sentiment in the private residential property market as well as the requirement for the commercial component of the subject development to be held under a single strata lot to be vested in a single owner at all times,” she added.

“This disallows any strata subdivision of the commercial component during the lease term, which could have prompted a more cautious stance and bidding strategy among developers due to the more restrictive investment exit options available,” she said.

The expected breakeven price for the residential component is estimated at S$950 to S$1,000 per sq ft, and the selling price could be between S$1,050 and S$1,150 per sq ft, Ms Chia said. For the retail component, the overall expected achievable monthly gross rents may range from S$6.00 to S$12.00 per sq ft depending on the size of the space leased, she added.