The partnership of Sing Development and Wee Hur Development won the public bid for the 99-year leasehold of the Fernvale Road which was held on September 27.
Edging out 13 other bidders who participated in the public tender for the Fernvale Road, the Sing Development and Wee Hur Development tandem topped all the bids for the property parcel at $287.1 million, which is estimated to be about $517.03 psf ppr.
It is worthwhile to note that even with the number of bids offered for the Fernvale Road, the difference between the top three bids was quite infinitesimal. This is starkly demonstrated in the difference between the top two bids, with the winning bid just 0.005% greater than the $287.09 million, which translates to $517.00 psf ppr, offered by the China Construction (South Pacific) Development Co. Moreover, the top and third bid was marked with only 0.07% difference.
According to Desmond Sim, Head of the CBRE Research Singapore and Southeast Asia, the narrow gap between the top three bids is an indication that developers and property bidders now have and share “similar views” on costing considerations such as project prices and construction costs control.
Meanwhile, the reduction of residential sites has had a positive effect on the market as the number of unsold stocks is now dropping, with developers eager to snap up available properties that are up for grabs.
“This is reflected in the number of bids for this Fernvale Road, bolstered by the success of High Park Residences and coupled with the fact that the Perumal Road site is probably the only site left for sale for 2016,” Sim explained.
To counter the scenario of escalating land bids, the CBRE forecasts that more residential sites will be released and put out on the market in the next GLS sales program.