A unit of City Developments (CDL) has put in the top bid for a fairly large condominium site in Tampines.
The latest government land sales site tender attracted nine bidders - fewer than some had expected - though the bid amounts were no less bullish than for recent sites.
The site in Tampines Avenue 10, launched last month under the confirmed list for the first half of this year, drew a top bid of $370.1 million from Bellevue Properties, a unit of CDL.
Located near Bedok Reservoir, the site has a land area of 21,717.7 sq m and maximum gross floor area of 60,810 sq m.
CDL said in a statement yesterday that if it is awarded the site, it will explore a condominium development of about 15 storeys with about 800 units. The development would also include a childcare centre, it added.
Mr Ong Teck Hui, national director of research and consultancy at JLL, said that while nine bidders could be considered a "good turnout", the number was still fewer than he had expected. He attributed this to developers being drawn to more attractive sites such as in Stirling Road and Lorong 1 Realty Park.
He added that the top bid reflected the bidder's outlook of prices remaining stable or increasing when the project is launched, as opposed to the current trend of prices moving downwards.
Mr Nicholas Mak, head of research and consultancy at SLP International Property Consultants, hailed the "return of sanity" to developers, saying the number of bids was more "reasonable".
He noted that the top bid was bullish as it was 17.2 per cent higher than the land price paid by MCC Land for the nearby land parcel on which The Alps Residences is sited.
This translates to a price of about $565.4 per sq ft (psf) per plot ratio. Mr Mak estimated the project could be launched at prices of above $1,150 psf from the middle of next year.
While there are two nearby projects, The Alps Residences and The Santorini, he said these projects are not likely to compete with the future development as they are expected to be substantially sold by the time the new project is launched.