PUBLISHED DEC 6, 2017
Frasers Centrepoint Limited (FCL) out beat nine other bidders with an offer of $955.4 million for a residential plot in Jiak Kim Street, used to be a popular night hang out Zouk. The land sales at former zouk, translates to $1,732.55 per sq ft per plot ratio (psf ppr) which is only 0.6 per cent above the bid from Hong Leong Holdings and Hong Realty.
This a record breaking the last high of $1,239 psf ppr achieved at the site for Martin Modern by GuocoLand in June last year by a jump of 39.9 per cent.
The 13,482 sq m site in Jiak Kim Street comes with commercial use on the first floor.
And Allgreen Holdings emerged top among seven bidders for a residential parcel in Fourth Avenue, lodging a tender of $552.96 million for the 18,532.2sqm site, which work out to be $1,540 ppr.
The two 99-year leasehold sites were on the Reserve List of the Government Land Sales programme and were triggered for public tender after minimum acceptable bids were made.
Allgreen win the bid by 2 percent higher than Bukit Sembawang Estates.
Allgreen Properties picked up two collective sale sites in Bukit Timah last week, including Royalville.
The bullish bids come after warnings from the Government on over-ebullience in the property market.
“Regardless the authority hailing the risk of excessive ebullience… the bidding for choice sites has not hinted at any abating,” said Cushman & Wakefield research director Christine Li.
Ms Tricia Song, research head for Singapore at Colliers International, said the solid showings for the Jiak Kim Street and Fourth Avenue sites “clearly reflect bidders’ trust in a recuperating… market amid the positive economic viewpoint”.
Frasers Centrepoint Singapore chief executive Christopher Tang said the Jiak Kim Street site is “a rare location in a cosmopolitan locale, filled with rich heritage and character, sitting appropriate on the edge of the Singapore River”
Market watchers felt that the aggressive price Allgreen paid for Royalville could have discourage some developers from bidding for the site in Fourth Avenue. Still, having seven bidders is considered a respectable showing, Ms Li said.
JLL head of research and consultancy Tay Huey Ying noticed that the grouping of delicate closings for the two destinations “seemed to have helped spread the competitor for indivuial site, and conceivably subduing the offers to some degree”.
She included: “Interestingly, local developers keep on maintaining their hang on the prime area market, pipping foreign developers, for example, China’s CSC Land and Hong Kong tycoon Li Ka-shing’s Japura for the two site in Jiak Kim Street and Fourth Avenue, separately.”
Source: http://www.straitstimes.com/business/property/fcl-makes-9554m-bid-for-ex-zouk-site
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