By Wong Siew Ying and Eileen Poh | POSTED: 28 Nov 2013 18:23 | CNA

SINGAPORE

Kingsford Development submitted the highest bids for the two 99-year leasehold private residential sites at Upper Serangoon View.

The two adjacent plots were put up for sale under the batch tender closing system, aimed at ensuring more prudent bids from developers.

The Urban Redevelopment Authority (URA) said the first plot, Parcel A, attracted a total of eight bids.

Kingsford Development placed the top bid of S$258.8 million, about 16 per cent higher than the second-highest bid from EL Development.

Meanwhile, for Parcel B, Kingsford Development outbid seven other contenders with a top bid of S$201.6 million.

That is nearly 13 per cent above the second-highest bid jointly submitted by Maxdin and SingHaiyi Residences.

Property agency Chesterton Singapore said the top bid for both plots translates to a land price of about S$522 per square foot (psf) – above its expectations.

But it added that most of the other bids were at the low end of the market’s expectations.

Donald Han, managing director of Chesterton Singapore, said: “In fact, it was at the lower end or well below the low end of pricing of about S$450 per square foot per plot ratio.

“(This) seems to indicate that the developers have actually taken the potential risk in the future in view of the oversupply situation, potential price corrections.”

But analysts said they expect greater interest in the next pair of sites released for sale next month – at Choa Chu Kang Grove for executive condominium (EC) development.

Mr Han said: “We think ECs should still see fairly good support and developers would tend to continue to bid fairly well for that site. Mainly because if you look at the end buying, the end project sales, like SkyPark Residences… they have actually managed to see oversubscription of more than three times.”

– CNA/ms

http://www.channelnewsasia.com/news/business/singapore/kingsford-devt-submits/903208.html