Six residential sites fetch $31m at first SLA auction
THE Singapore Land Authority's (SLA) first auction of six 99-year leasehold residential sites yesterday fetched $30.64 million — another sign that the local property market is still bubbling.
More than 120 individuals — comprising professionals, businessmen and niche developers — as well as several private companies turned up at M Hotel to bid for six infill sites, or pockets of State land located in the midst of prime residential housing estates.
Previous bids for sites were through open tender, but the SLA said yesterday's auction would "help meet the current market demand for high quality residential properties and allow wider participation by individuals to build their own dream homes".
Included in the sale were two large parcels — 1,550.5 and 2,712.9 sq m respectively — at Eng Neo Avenue, a 585.7-sq-m plot at Moonbeam Walk off Holland Road, another at Jalan Insaf in Bishan measuring 647.6 sq m, a 392.8-sq-m plot at Bedok Close as well as a 329.5-sq-m tract at Somme Road, off Jalan Besar.
For more than two hours, the hotel meeting room was filled with eager punters eyeing the best deals. The Somme Road site received the most bids — 64 in all — and was eventually went to Sarda Pte Ltd for $3.76 million.
The Eng Neo Avenue sites fetched the highest bids at $6 million and $12.1 million respectively, with both lots earmarked for good class bungalows, going to private investors.
The Bedok Close plot went for $1.3 million to Avadh, while the Jalan Insaf parcel in Bishan fetched $3.54 million from Lye Holdings. The plot at Moonbeam Walk went to Liverland Investments for $3.94 million.
Encouraged by the strong bids, SLA chief executive Mr Lam Joon Khoi said the authority would consider releasing more infill sites to help meet the current market demand for high quality residential properties.
The auction proved that there are still eager buyers looking for opportunities in the landed property market, said Mr Donald Han, managing director of property consultants Cushman and Wakefield.
"There are a lot of new entrants and smaller developers coming into the market and taking the 99-year lease route, which is quite encouraging considering the market has been fairly quiet over the last three months," he said.
But things have been picking up: Last week, the 30-year-old Westwood Apartments at Orchard Boulevard was sold to Malaysia's YTL Corporation for $435 million, or $2,525 psf, making it the most expensive site to be sold by collective sale to date.
For one of yesterday's buyers, securing the 1,550.5-sq-m plot at Eng Neo Avenue for $6 million was anything but extravagant.
"Land prices will be firm because it is limited in supply here," said a 40-something financer who declined to be named.
"I had no problems buying a 99-year lease because it's an opportunity. A freehold piece of bungalow would have cost me more than double.
"I've seen the plot and it has potential and it's in District 10. This auction has saved me a lot of money."
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