By Wong Siew Ying | Posted: 06 September 2012 2046 hrs


The Urban Redevelopment Authority (URA) said a Reserve List site at Tai Thong Crescent (Parcel C) has attracted strong interest with a total of eight bids.

Spanning some 8,200 square metres, the 99-year leasehold site has been zoned for residential use with commercial space on the first storey.

The top bid of S$245 million came from Verwood Holdings and Intrepid Investments.

Verwood Holdings is a wholly-owned subsidiary of City Developments, while Intrepid Investments is a subsidiary of Hong Leong Holdings.

The top bid was about 11 per cent higher than the second bid, which was submitted by Chip Eng Seng’s unit, CEL Property.

According to URA, the remaining bids ranged between S$172.7 million and S$220.6 million.

Analysts said the top bid works out to a price of S$793 per square foot (psf) per plot ratio and they estimate that the residential units in the development may be launched at a price of above S$1,450 psf.

Executive director for Research & Consultancy Department at SLP International Property Consultants, Nicholas Mak, said: “This could set a new benchmark price for 99-year leasehold apartments in the vicinity. Recent average transacted prices of new 99-year leasehold homes in the area such as Nin Residences and Eight Riversuites are S$1,205 psf and S$1,338 psf respectively. The commercial space could potentially fetch prices of above S$2,500 psf, depending on the size, layout and orientation.”

With a plot ratio of 3.5, Mr Mak said the site can potentially yield about 265 condominium units and 28 commercial units.

Senior manager for Training, Research and Consultancy at Dennis Wee Group, Lee Sze Teck, said: “The rejuvenation of Potong Pasir with the injection of residential developments like 18 Woodsville, Nin Residence, The Senett, the recently-sold Pheng Geck Avenue site and the current site will increase demand for retail amenities in the area. The commercial component on the first storey will help address the shortfall.”

In a statement, CDL said if the bid for the site is successful, they plan to build a residential development of up to 19 storeys, with around 28 commercial units on the ground floor. And some of these commercial units may be released for sale.

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

– CNA/ck