The Urban Redevelopment Authority (URA) announced that it received nine bids for the 75,851 sq ft site at Jalan Kandis in Sembawang, after the public tender closed on Thursday (7 April). It was launched for sale on 25 February.
A subsidiary of Tuan Sing Holdings submitted the top bid of $51.07 million, or $481 psf per plot ratio (psf ppr), which is slightly higher than Qingjian Realty’s offer of $50.18 million ($473 psf ppr).
Due to its relatively small size, the 99-year leasehold site could yield about 110 units.
As the developer would be building fewer condo units, there is less risk of failing to meet the government’s deadline in disposing the units under the ABSD and Qualifying Certificate rules, especially if the apartments are competitively priced.
“The palatable quantum offsets the challenges of this untested site, which is probably the reason for the strong showing by the bidders,” said Desmond Sim, Head of Research (SEA) at CBRE.
“The relatively small plot size and the small number of units it will yield means that risks remain manageable. If priced competitively, the proposed development could enjoy a high rate of success.”
He added that when the condominium is completed, it will be the only non-landed development within a 2 km radius, as the area comprises mainly landed properties.
The site is just next to Sembawang Park and within proximity to established schools and the Sun Plaza shopping mall.
A decision on the award of the tender will be made after the bids have been evaluated, said the URA.
–PROPERTYGURU