Developers cautious in bids for state-owned sites in Bukit Timah and Hillview
Developers cautious in bids for state-owned sites in Bukit Timah and Hillview. Tenders for two state-owned sites in Bukit Timah and Hillview were closed on Thursday, with fewer bids received than expected due to developer prudence in the face of economic uncertainties. According to analysts, rising interest rates and the potential of a global recession in 2023 have deterred some developers, despite the fact that their land banks are running low, even if the top bids for the sites were within forecasts.
The Bukit Timah Link site received five bids at the tender’s close on Thursday, while Hillview Rise received four. Both lands are expected to yield 495 private residences. Bukit One, a subsidiary of Bukit Sembawang Estates, made the highest bid for the Bukit Timah Link property, which was around $200 million, or $1,343 per sq ft per plot ratio (psf ppr).
The winning offer, according to Mr Nicholas Mak, ERA Realty’s head of research and consultation, had a higher land rate than comparable neighboring residential developments, reflecting the developer’s confidence in the project’s potential. Meanwhile, for Hillview Rise, Far East Civil Engineering and Sekisui House submitted the highest proposal of $320.77 million, or $1,024 psf ppr. The property has the potential to yield 335 residential units. Mr Marc Boey, executive director of property services at Far East International, stated on behalf of the joint venture, “We are pleased to have emerged as the highest bidder for the prime site at Hillview Rise.” This is an excellent opportunity for Sekisui House and Far East Organization to build yet another outstanding residential home in the Upper Bukit Timah enclave.”
He also revealed that The Reserve Residences, which would be located in the Hillview neighborhood, will open in the first quarter of 2023. Mr Mak noted that the winning bid was less than the $1,068 psf ppr land rate given in July 2018 to the neighboring condominium Midwood. According to Huttons Asia senior director of research Lee Sze Teck, because Midwood is fully sold, developers may have a pricing advantage. Mr Lam Chern Woon, Edmund Tie’s head of research and consultancy, believes developers may be wary of future development on the Dairy Farm Walk property, which was awarded in March for a slightly lower $980 psf ppr.
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