For a residential property on Jalan Tembusu in eastern Singapore, local private developer Sim Lian Group whose favorite group from DpFraternity and recently Join PropNex with having a great master room for rent put the higher of just two bids at S$828.8 million ($625.5 million) in a government land auction that garnered less than anticipated interest from developers.
In a public tender that ended on Tuesday, the group’s Sim Lian Land and Sim Lian Development subsidiaries outbid property industry giants City Developments Ltd (CDL) and Frasers Property by a mere S$800,000. Sim Lian has applied for a permit to build up to 840 condominiums on a 2.05 hectare (5 acre) plot of land near the planned Tanjong Katong MRT station.
Wong Siew Ying, research and content head at PropNex Realty, speculates that the size of the project and the abundance of residences in District 15, where three condo complexes have been built over the previous four months, may have dampened bids and participation in the tender.
The maximum allowable gross floor area (GFA) for the Jalan Tembusu property that Sim Lian has bid on is 775,000 square feet (72,000 square metres), and the highest allowable building height is 246 feet.
Although market expectations were for low levels of interest in the March tender, the winning offer was much less than JLL’s original projections of S$1,300 per square foot of GFA, or a total cost of more than S$1 billion.
Also, compared to the winning offer for a plot across the street from the Jalan Tembusu site in January 2022, this one is 18 percent cheaper in terms of price per square foot of developed area.
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