More than 600 private residential units will be built on the first mixed commercial and residential land site in new township Bidadari.
The first private land parcel was awarded yesterday to entities linked to Singapore Press Holdings (SPH) and Kajima Development after they placed the top bid of $1.13 billion in a tender for the 99-year leasehold site next to Woodleigh MRT station.
The 2.54ha plot was hotly contested, drawing 12 bids for what is slated to be a landmark project in Bidadari, which has been oversubscribed in Build-to-Order launches.
Besides residential units, there will be a 65,000 sq ft community club and a 20,000 sq ft neighbourhood police centre - requirements of the tender - as well as a 310,000 sq ft retail and commercial component, SPH said yesterday. The two partners, to have equal stakes in the joint venture, will bring in new ideas from Japan for this development, added the company.
SPH chief executive Alan Chan noted the company's experience in developing the upmarket condominium Sky@Eleven, as well as three malls, including Paragon.
"This strategic move shows our commitment in expanding and enhancing our property portfolio," he said, adding that SPH's experience and expertise, strong partnership with Kajima and the site's potential are "winning factors that will contribute to the success of this project".
Analysts called the bid bullish as it translates to a land price of $1,181 per sq ft (psf), about 50 per cent more than the $775 psf paid in 2014 for nearby The Poiz Centre and The Poiz Residences mixed-use site.
Mr Nicholas Mak, head of research and consultancy at ZACD Group, noted that the new site could yield about 825 homes.
"If the development will have fewer than the expected number of units, the average size of each unit will be relatively large, and the price quantum will be high," he added.
Larger units would command a price quantum "significantly higher than the average 99-year leasehold suburban condominium", which he said was an unconventional strategy, as developers tend to build many smaller units to get a higher psf price.
SPH's last residential development, Sky@Eleven, did well with fairly large units, which sold for about $2 million each, Mr Mak said.
But he added that the Bidadari project would face competition from the upcoming Woodleigh Lane site, which will close for tender on July 11.
Dr Lee Nai Jia, head of research at Edmund Tie and Co, said the Bidadari population could grow to about 37,000 in three to five years.
"The retail catchment area is great, as there are not many malls in the area," he said. He added that taking into account the prices of HDB flats in the area, he expected residents in the area to have relatively higher disposable income.