Developers cautious in bids for state-owned sites in Bukit Timah and Hillview

by Albert02

Developers cautious in bids for state-owned sites in Bukit Timah and Hillview

Developers cautious in bids for state-owned sites in Bukit Timah and Hillview. Tenders for two state-owned sites in Bukit Timah and Hillview concluded on Thursday, with fewer bids than expected due to developer caution in the face of economic uncertainty. Rising interest rates and the possibility of a global recession in 2023, according to analysts, have deterred some developers, despite the fact that their land banks are running low, even if the top offers for the sites were within projections.

At the tender’s closure on Thursday, the Bukit Timah Link site received five bids, while Hillview Rise received four. Both properties are anticipated to produce 495 residential dwellings. Bukit One, a subsidiary of Bukit Sembawang Estates, placed the highest bid of roughly $200 million, or $1,343per sq ft per plot ratio (psf ppr), for the Bukit Timah Link property.

The winning offer, according to Mr Nicholas Mak, ERA Realty’s head of research and consultation, had a higher land rate than comparable neighboring residential developments, reflecting the developer’s confidence in the project’s potential. Meanwhile, for Hillview Rise, Far East Civil Engineering and Sekisui House submitted the highest proposal of $320.77 million, or $1,024 psf ppr. The property has the potential to yield 335 residential units. Mr Marc Boey, executive director of property services at Far East International, remarked on behalf of the joint venture, “We are pleased to have emerged as the top bidder for the prime site at Hillview Rise.” This is an excellent opportunity for Sekisui House and Far East Organization to build yet another outstanding residential property in the Upper Bukit Timah enclave.”

He also disclosed that The Reserve Residences, which would be located in Hillview, will open in the first quarter of 2023. Mr Mak observed that the winning bid was less than the adjoining condominium Midwood’s land rate of $1,068 psf ppr in July 2018. Because Midwood is fully sold, developers may have a pricing edge, according to Huttons Asia senior director of research Lee Sze Teck. Edmund Tie’s head of research and consultancy, Mr Lam Chern Woon, believes developers may be hesitant to build on the Dairy Farm Walk property, which was awarded in March for a slightly lower $980 psf ppr.

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