The Tan Quee Lan Street land only received 2 bids, won at $800.2 million or $1,535 psf ppr that was submitted by a collaboration between GuocoLand subsidiary GLL D, Hong Realty and Intrepid Investments.
There were 4 bidders for the land at Bernam Street, with Chinese company HY Realty leading with the top bid of $440.9 million or $1,463 psf ppr.
All the 3 sites have 99-year leases, the Urban Redevelopment Authority said.
Head of research for Singapore and South-east Asia at Cushman & Wakefield, Miss Christine Li, comments that property developers were concentrated across the 3 sites, which may have adulterated the bids and the result is lower bids than expected.
“The bids in this group tender contrast with the present day reading of the residential sector of strong home sales and record rates set in many regions,” she said.
Miss Li also added that the top bids were more calculated, a reflection of the uncertainties in the worldwide economy.
“Developers would rather make mistakes on the side of caution so as to reduce downside risks should the supply overhang intensify because of the potential recession in the coming 12 months or so,” she added.
CBRE’s head of research for South-east Asia, Mr Desmond Sim, said that the demand for the One-north Gateway site was not a surprise given its “palatable size and strategic location”. Though small, One North Eden condo is to be developed into 165 units with commercial shops on the ground floor.
Bidders were “likely encouraged by the increasing tenant pool, and the few options existing in the private residential market”, he noted, with the region’s last residential launch in 2005.
Miss Li said ride-hailing start-up Grab and technology firm Razer are building their headquarters within one-north, which could add to the already strong demand for housing, “as affluent technology professional working long hours might appreciate living nearby to shorten their commute”. Already One North Eden has attracted interest before its launch from professionals working in the area. You can see for yourself at the One North Eden Showflat.
Mr Sim added the Bernam Street site will “benefit from developments in the Greater Southern Waterfront too”.
Huttons Asia research head, Mr Lee Sze Teck, said that while the Tan Quee Lan Street land is an enticing one, “only property developers with the vast experience of developing projects in the city core will partake, which is the reason why we don’t see many bids”.
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