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Dundee Road site attracts S$483.2m top bid

SINGAPORE — While interest for a Dundee Road private housing site has paled in comparison to the hotly-contested site in Toa Payoh days earlier, analysts said the top bid in the latest tender reflects the developer’s confidence in the Queenstown area.

SINGAPORE — While interest for a Dundee Road private housing site has paled in comparison to the hotly-contested site in Toa Payoh days earlier, analysts said the top bid in the latest tender reflects the developer’s confidence in the Queenstown area.

At the close of tender yesterday, the 99-year leasehold site received nine bids, with the top bid of S$483.2 million put in by Chinese developer Hao Yuan’s unit HY Realty, the Housing and Development Board said.

The 113,194 sq ft site, released from the Confirmed List of the Government Land Sales (GLS) programme, has a plot ratio of 4.9. With a maximum gross floor area of 554,652 sq ft, it can yield an estimated 645 dwelling units. The top bid works out to around S$871 per square foot per plot ratio (psfppr).

Property analysts noted that the HY Realty’s bid was 8.4 per cent higher than the second-highest bid of S$445.9 million, or around S$804 psfppr, from Allgreen Properties.

“With a winning margin of more than 8 per cent, the bid demonstrates the confidence in the mature estate of Queenstown with its network of amenities and the MRT being located right next to the site, as well as the stability of the Singapore market,” said Mr Desmond Sim, Singapore and South-east Asia head of property firm CBRE Research.

Dr Chua Yang Liang, head of research for South-east Asia at real estate firm JLL, noted that HY Realty had not been successful in its previous attempts to secure sites under the GLS — a factor that could explain its aggressive bid.

He added that the top bid could translate into a selling price of between S$1,550 and S$1,600 psf, assuming a construction cost of S$320 psf to S$360 psf.

“This could be priced to sell, especially since the average take-up rate of the nearby projects around Queenstown and Redhill have been about 20 to 60 per cent with an average price for new sales ranging between S$1,680 psf and S$1,750 psf,” he said.

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