Posted: 12 March 2013 2033 hrs

SINGAPORE

The land tender for a commercial site at Venture Avenue in Jurong East has attracted nine bids. According to the Urban Redevelopment Authority (URA), Sim Lian JV (Vision) placed the top bid at about S$701 million for the 99-year leasehold site.

It is about nine per cent higher than the second highest bid of S$643 million from Victory One Pte Ltd.

Sim Lian JV (Vision) is jointly incorporated by Sim Lian Land and Sim Lian Development.

In a statement, URA said the top bid works out to a tendered sale price of S$10,858.99 per square metre of Gross Floor Area (GFA).

Located in the new growth area of Jurong Lake District, the land parcel spans over 11,000 square metres and has a maximum permissible GFA of more than 64,000 square metres.

Analysts said the strong bids received is reflective of the strong demand for strata-titled commercial property among investors, as can be seen in robust sales at the Alexandra Central project.

Nicholas Mak, executive director at SLP International Property Consultants, said: “The developer of this Jurong East site may also be planning to strata-divide the development for sale. With a land price of S$1,009 per square foot per plot ratio, the break-even price of the commercial space is estimated to be about S$1,700 to S$1,750 psf.

“However, the developer would also face the risk of the government imposing cooling measures on commercial properties before the launch of this project.”

-CNA/ac