DEVELOPER UOL Group and its joint-venture partner beat two rivals to lodge the top bid for a Simei residential site.
The mainboard-listed company and its partner Peak Century offered $236 million for the 347,000 sq ft site in the tender that closed yesterday. Their bid values the site at about $296 per sq foot per plot ratio (psf ppr).Frasers Centrepoint was just behind at $231 million, or $290 psf, with ChoiceHomes Investments bidding $187.8 million, or $236 psf.
Market watchers said the 99-year leasehold site - with a gross floor area of 797,434 sq ft - attracted a modest number of bids.
When the tender was launched on Dec 5 by the Urban Redevelopment Authority, there was speculation that it could attract plenty of interest, given the eight bidders which lined up for a similar suburban Woodlands site in November.
Mr Nicholas Mak, director of research and consultancy at Knight Frank, said the three bids for the Simei plot, although on the low side, were still healthy and reflected a level of confidence among developers about the area.
The $296 psf price is higher than the $232 psf fetched by the Woodlands site, he said. The Simei site is near Simei MRT station, Eastpoint Mall and schools.
Mr Li Hiaw Ho, executive director of CBRE Research, estimates a break-even price of about $650 psf, and says the site's new development is likely to sell at between $700 psf and $750 psf.
He added that the project could be well received as there were no launches for mass-market private homes in the Simei, Tampines or Pasir Ris areas last year.
'There could be pent up demand from private home owners and HDB upgraders residing in these estates,' he said.
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