By Wong Siew Ying | Posted: 18 September 2012 2018 hrs


The residential site at Dairy Farm Road attracted strong interest from developers with nine bids lodged.

According to the Urban Redevelopment Authority (URA), the top bid of S$244.32 million came from First Shine Properties and Meadows Bright Development.

First Shine Properties is a wholly-owned subsidiary of Hock Lian Seng Holdings, while Meadows Bright Development is an associate company which is partly owned by King Wan Corporation.

The top bid is about 10 per cent higher than the second highest bid placed by Secure Development.

The rest of the bids for the 99-year leasehold site range between S$166.57 million and S$222.3 million.

It spans 17,545.8 square metres and has a maximum permissible gross floor area (GFA) of 36,847 square metres.

Property analysts said the top bid of S$244.32 million works out to S$616 per square foot per plot ratio.

The site had attracted healthy interest among developers despite new guidelines by the government to manage the number of shoebox units recently.

Dennis Wee Group’s senior manager for training, research and consultancy, Lee Sze Teck, said: “This could mean that the government’s guidelines have limited impact on the market as developers can find innovative ways to comply – such as selling more loft space, more private enclosed space or a roof terrace – and yet maintain their profits. The wide disparity could be due to developers grappling with the new guidelines initially.”

Mr Lee added that the breakeven cost is estimated between S$1,050 and S$1,100 per square feet and the estimated selling price could range between S$1,250 and S$1,300 per square feet.

URA said a decision on the award of the tender will be made after the bids have been evaluated.

– CNA/ck