At Fernvale Road, a Government Land Sales site attracted strong interest with fourteen developers submitted their bids for the 99 years leasehold residential site for new launch condo at the close of the tender on the Tuesday, 27 September.
The bidding results as follows :
Top bid at S$287.1 million by consortium between Sing Development and Wee Hur Development
Second highest bid at S$287.09 million by China Construction (South Pacific) Development
Third highest bid at S$286.9 million by Allgreen Properties
Lowest bid at S$223.23 million by Kingsford Property Development
Many developers’ appetite for development have been triggered by cutback of available residential sites for new condo development or new condo launch projects which also had reduced the unsold land stock in a very much positive way and this is very much reflected in the number of bids submitted and can be attributed by the success of the recent nearby High Park Residences new condominium project as well as this Perumal Road residential site is the only site remaining for sale in 2016.
By comparing the top three bids, one can observed that these bids submitted are so close to one another that the difference between the top and third bid is separated very thinly by a mere margin of difference of 0.007 percent. This is a clear indication that the developers share the same pricing sentiment and hold similar construction costs control perspective when bidding for land for real estate development projects and having the ability to control costs is such a major factor particularly so for the top two bidders who are developers with core construction business enabling them to come to terms with costs associated with projects which call for prefabricated prefinished volumetric construction.