A residential 0.63ha site in Farrer Drive will be put up for public tender soon as a developer has submitted an application for this reserve list site recently which triggers the tender sale.
This developer has put in a minimum bid of $88.9 million for the subject site which was an acceptable initial offer.
This 99-year-leasehold residential site is expected to provide 120 to 150 units of condominium units for a maximum height limit up to 8 storeys. This site has the potential to be built up to a gross floor area of 10,030 sq m.
Property analysts expect bids from about 4 to 9 developers for this plot with estimated bids in the range from $89 million to $94 million which would work out to about $825 to $870 per sq ft per plot ratio. To maximise the sales proceed, the successful developer may opt to build compact size units.
The initial application bid for this plot was noted to be one of the highest in psf ppr terms for the Singapore Government Land Sales programme.
The previous norm was for developers to submit a low bid enough for the government to accept the initial application in order to trigger a reserve list land parcel sales tender. However, in this case, the interested party has placed a high bid which could be to discourage other smaller developers from participating for the tender.
This land plot has appealing features being located in the prime district 10 and near to many top local and international schools.
As the eventual unit configuration may be skewed toward more compact size units, majority of the buyers for the project to be built on this site will be envisaged to be for investment.
14 May 2012