As reported in both the ST and BT today, Wing Tai Holdings has beaten eight other bidders with its top offer of $177.4 million or $345psf ppr for a 99-year leasehold residential site on Petir Road. The site is next to the sold-out Tree House project.
The bid was slightly below the $350-$400psf ppr analysts said the site could fetch – based on an eventual average selling price of $800psf – when it was launched a day after the Government introduced measures to curb property speculation on Aug 30.
But the large number of bids surprised some, as recent state land tenders have drawn a more muted response from developers. Analysts attributed the change this time to the Petir Road site’s location, given that the 429-unit Tree House was quickly snapped up in the second quarter.
Analysts reckon new residential project on the site can sell for around $750 - $800psf – or more if Wing Tai chooses to pitch it as a mid-tier product.
The 99-year leasehold Tree House was launched at $830psf on average in April 2010. And units at Mi Casa, a 99-year leasehold condo at Choa Chu Kang Avenue 3, went for $700 - $850psf between July and September. And in the resale market, units in the 12-year-old Maysprings nearby sold at between $560psf and $760psf over the same period.
Wing Tai’s bid was just 2% above the second highest offer of $173.8 million or $338psf ppr from Sim Lian Land.
City Developments - which is developing Tree House together with Hong Leong Realty - made its bid through Sunmaster Holdings. It came in fifth with a bid of $167.6 million or $326psf ppr.
The site is about 2.3ha with a maximum permissible gross floor area of about 514,000sqft. Around 430 units can be built on it. It is on the south-eastern fringe of Bukit Panjang HDB estate, about 10 minutes’ walk from the Pending LRT station. When the Downtown Line 2 is completed in 2015, the nearest station will be Hillview station that is a short drive away.
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