The tender for the Tampines Avenue 10 residential site closed on 25 April after nine property developers bid for it, according to the Urban Redevelopment Authority.
The top bid for the 2.17 ha site (parcel C) that has leasehold of 99 years was submitted by a subsidiary of City Developments Limited, Bellevue Properties at $370.1mil translating to approximately $565 psf ppr.
Following closely were two Chinese developers Kingsford Development (Developer for Kingsford Waterbay) that bid $350 mil and Qingjian Realty that bid $345 mil.
A CDL spokesperson said that there was a 5.7% margin between its bid and the second highest bid in the tender that was tightly contested.
The site is expected to yield approximately 715 units. It was launched for sale under the Government Land Sales Program confirmed list of 1H 2017 on 14 March.
Amenities near the site include IKEA Tampines, Giant Hypermarket, and Courts Megastore. There are also many schools nearby including Temasek Polytechnic and East Campus of United World College.
“Even though 9 bidders represented a good turn up, it was below expectations which could be due to developers being drawn to the more attractive Lorong 1 Realty Park and Stirling Road sites,” said JLL National Director of Research and Consultancy Ong Teck Hui.
“However, the top bid was higher by 17% from the $483 psf ppr paid in April 2015 for The Alps Residences site and close to the $562 psf ppr paid for The Santorini in July 2013 before the Total Debt Servicing Ratio effects were felt,” he added.
Ong revealed that the top bidder expects the prices either to remain stable or to move upwards at the launch of the project. The average selling price of the projects nearby such as The Alps Residences and The Santorini is $1,070 to $1,090 psf.
CDL spokesperson revealed that if they were awarded the site, they would put up a condominium of about 800 units in 15 storeys. The development will include a childcare centre and enjoy a North-South orientation.
URA said that the tender would be awarded after evaluating the bids.
Find out on more upcoming developments by visiting New Futura by CDL in District 9, a brand new executive condo; Hundred Palms Residences and not forgetting Martin Modern, an upcoming launch by GuocoLand.