A tender for a residential site in Upper Paya Lebar Road had been expected to attract keen interest from developers. Indeed, it lived up to its billing.
The 216,113.3 sq ft site had drawn seven bids in a closely-fought battle when the tender closed yesterday. Property analysts said they expected interest in the 99-year leasehold site as it was near major transportation links and popular suburban shopping mall Nex. In addition, developers would have been encouraged by the success of two nearby projects. 702-unit Bartley Residences, next to the site, is sold out while 375-unit Bartley Ridge is close to selling out.
The top bid from UOL Overseas Investments - a unit of the UOL Group - came in at $392.3 million, or $648.30 psf ppr. This was just 3.2% higher than the next highest bid of $378.3 million, or $625.20 psf ppr, from EL Development.
A consortium comprising Frasers Centrepoint's FCL Topaz, Far East Civil Engineering and Sekisui House came in third with its offer of $344.9 million, or about $570 psf ppr, which was 9.7% lower than EL Development's bid.
The gap between the top two bids and the remaining offers reflects developers' confidence in the property market, after tougher loan curbs hit affordability of homes. Besides, the site is highly sought after as land parcels in the upcoming residential enclave are scarce.
According to UOL, it plans to build a 17-storey condo with 700 units if awarded the site. Break-even prices could range between $1,050 and $1,100 psf, placing selling prices between $1,300 and $1,400 psf.
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