Exclusively written by SLP Research & Consultancy Dept.
Thursday, 3 May 2018
The tender for the condominium development site located along Hillview Rise closed on 3 May 2018.
The site has a land area of 14,296 sqm and can yield a maximum Gross Floor Area (GFA) of 40,030 sqm. This development site could yield about 535 condominium housing units.
The site is fairly attractive in terms of its location, manageable size and regular shape. However, there are a few other vacant land parcels in the vicinity which could be launched for sale in the future, resulting in potential future competitors to this project.
Tender participation rate
A total of 9 bids were submitted for the subject site, which indicated a relatively healthy level of participation from the developers even though the subject site is arguably not the most attractive site in terms of its accessibility to the city area. In addition, this is a price-and-concept or “two-envelopes” tender, which does not appeal to some developers.
The number of bids submitted today were slightly higher than the seven bids submitted for the adjacent Kingsford.Hillview Peak land parcel which was awarded on 7 March 2012.
In addition, the latest batched government tender of three 99-year leasehold residential sites that closed on 26 April 2018 saw developers flocking to the sites at Cuscaden Road with 9 bids submitted and Mattar Road with 10 bids submitted.
A consortium with City Developments Limited (CDL) and CapitaLand put in two bids with different concept proposals for this Hillview Rise site, possibly to increase their chances of getting the subject site.
Some property developers are interested in this site because of the limited stock of unsold condo units in the vicinity, which will pose little competition to its project.
GLS tenders in the Bukit Batok & Hillview area
|No.||Tender Site||GFA (sqm)||Tender Award Date||No. of Bids||Tender Price (SGD)||Tender Price psf. ppr. (SGD)|
|1||The Hillier||40,025||03 May 2011||12||$289,777,000||$672.61|
|2||Kingsford.Hillview Peak||35,416||07 Mar 2012||7||$243,216,999||$638.01|
|3||Le Quest||44,091||30 May 2016||11||$301,160,000||$634.57|
Source: SLP Research, URA
Estimated winning bid
The estimated top bid in the tender for this site could range $388 million to $431 million ($900 to $1,000 psf ppr). Since this is a price-and-concept or “two-envelopes” tender, the bidder with the highest bid may not necessarily win the tender. The winner will need to also submit a development concept that meet the authorities’ criteria and is deemed attractive to the authorities. The government may announce the winner of the tender in a few weeks from now.
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