21/04/2016

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Top bid of $419.4m for Tanah Merah site

The tender for a 2.4ha residential site at New Upper Changi Road/Bedok South Avenue 3 (Parcel B) closed on Tuesday (23 Feb), after attracting eight bids from property developers, revealed the Urban Redevelopment Authority (URA).

Launched for sale on 20 January this year, the site was originally on the reserve list of the Government Land Sales (GLS) Programme. The URA had, on 7 January, accepted a successful application for the site to be triggered for sale.

The highest bid of $419.38 million was submitted by CEL Residential Development, a subsidiary of Chip Eng Seng Corporation. This translates to around $761 psf on the gross floor area.

Offered on a 99-year lease, the land parcel could yield about 570 housing units.

“The plot benefits from its proximity to the Tanah Merah MRT station in a relatively mature and established estate,” said Desmond Sim, CBRE Research Head, Singapore and South East Asia.

“That the site was triggered from the reserve list indicates developers still maintain healthy interest in sites, especially in sites with a relatively palatable quantum and with time on their side. Some developers are diversifying their risk by entering joint ventures, which some of the bidders have done in this tender,” he added.

A number of condominium developments such as Stratford Court, East Meadows, Casa Merah, Optima@Tanah Merah, and the upcoming The Glades are located in the vicinity.

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

Picture Source: Map of the Tanah Merah residential site. Source: URA
Source copied: http://www.propertyguru.com.sg/property-management-news/2016/2/118112/top-bid-of-419-38m-for-tanah-merah-site

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