110 units, 75,851 sq ft and bids of S$51.07 million

We often hear of small pieces of lands within the KLCC vicinity being sold for ever higher prices. The reason is because the development be built on them would also be offered at prices higher than the sky or at least the clouds. Recently, there is one small piece of land in Singapore where bidding was aggressive. 9 bidders submitted their bids for a piece of land smaller than 2 acres. Yes, it is in Singapore where the land scarcity issue is much more intense compared to even the KLCC areas.
According to an article in PropertyGuru Singapore site, the Urban Redevelopment Authority (URA) announced that it received nine bids for the 75,851 sq ft site at Jalan Kandis in Sembawang. A subsidiary of Tuan Sing Holdings submitted the top bid of $51.07 million. This small plot of 99-year leasehold site could yield about 110 units. Desmond Sim, Head of Research (SEA) at CBRE said, “The palatable quantum offsets the challenges of this untested site, which is probably the reason for the strong showing by the bidders.”
He further added that once completed, the condominiums at this site would be the only high-rise development within a 2km radius.The site is just next to the Sembawang Park and within proximity to established schools and the Sun Plaza shopping mall. URA will decide after all the bids have been evaluated. Bidding has closed on 7 April 2016.
sembawang condoLet’s do some conservative calculations about the potential prices the 110 units? Assuming the land cost is 20% of the potential Gross Development Value (GDV). This meant that the potential GDV is S$255 million. Based on 110 standardised units, this meant that it’s around S$2.3 million. What can we buy for S$2.3 million currently? Some choices attached, as per information from property guru.com.sg There are just two choices in the Sembawang / Yishun area. I think the estimation may just come true. Let me try to follow this piece of news and report to all then. Buying is not within my affordability but I think great to know right. Happy working!
written on 11 Apr 2016
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