TWO suburban residential sites drew bids at the low end of expectations when government tenders closed on Thursday (Jul 18), as developers continued to play it safe in a sluggish market.
A site in the north of Singapore, at Canberra Crescent, saw a top bid of S$279 million or S$793 per square foot per plot ratio (psf ppr) from a joint venture between Kheng Leong, the private real estate arm of the family of late veteran banker Wee Cho Yaw, and Low Keng Huat.
Property consultants had anticipated two to four bids for the District 27 site with bids ranging between S$700 psf ppr and S$1,000 psf ppr.
Second in line for the site was a consortium consisting of BHCC, Apex Asia, Heeton Holdings and Santarli Construction, with a bid of S$275.1 million or S$782 psf ppr. GuocoLand also took a shot at the Canberra site, offering S$228.8 million or about S$650 psf ppr.
The site measures 20,437.3 square metres (sq m), with maximum gross floor area (GFA) of 32,700 sq m, and can yield around 375 units.
Observers noted that the top bid for the Canberra plot was only about 10 per cent higher than that of the most recent executive condominium site sold. The Tampines Street 62 EC site was awarded to Sim Lian Land and Sim Lian Development in October 2023 for S$543.3 million or S$721 psf ppr, a record-high rate for EC land.
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Another tender that closed on Thursday, for a site at De Souza Avenue in the west, saw a top bid that was also on the low side of expectations. Sustained Land bid S$278.9 million or S$841 psf ppr for the Toh Tuck area plot, while a second bid came from Capital Development, an affiliate of Eng Seng Lee Construction, at S$228 million or about S$688 psf ppr.
Consultants polled before the tender closed had reckoned the plot could fetch up to four bids, with offers ranging from a low of S$800 psf ppr to a high of S$1,300 psf ppr.
The De Souza Avenue site is located off Jalan Jurong Kechil in District 21. It has a land area of 19,245.4 sq m and a maximum GFA of 30,793 sq m, potentially yielding around 355 units.
Developers have turned distinctly more risk averse in their land acquisitions, as new home sales have slumped in recent months. The latest figures show that a total of 1,916 units were transacted in H1 2024, 43.4 per cent lower than the 3,383 units sold in the corresponding period in 2023.
Most recently, a plot of state land in Upper Thomson Road found no takers when market watchers were expecting up to three bids. The site would have yielded 540 residential units and 100 serviced apartments.
A nearby Upper Thomson Road (parcel B) plot for 940 residential units drew only one bid at closing. It was awarded in April at S$780 million or S$905 psf ppr to a joint venture between GuocoLand and Hong Leong Holdings.
