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 received than expected as developers exercise caution in the face of economic uncertainty. Rising interest rates and the prospect of a worldwide recession in 2023, according to analysts, deterred some developers, despite the fact that their land banks are running low, even though the top bids for the sites were within estimates.
The Bukit Timah Link site attracted five proposals at the tender’s closure on Thursday, while Hillview Rise had four. Both lands are anticipated to produce 495 private residences. Bukit One, a subsidiary of Bukit Sembawang Estates, made the highest bid for the Bukit Timah Link property, which was around $200 million, or $1,343 per sq ft per plot ratio (psf ppr).
Mr Nicholas Mak, ERA Realty’s head of research and consultation, stated that the winning offer had a higher land rate than other nearby residential projects, indicating the developer’s confidence in the project’s potential. Meanwhile, Far East Civil Engineering and Sekisui House submitted the highest proposal of $320.77 million, or $1,024 psf ppr, for Hillview Rise. The land has the potential to produce 335 residential units. Far East International’s executive director of property services, Mr Marc Boey, stated on behalf of the joint venture, “We are happy to have emerged as the highest bidder for the prime site at Hillview Rise.” This is a fantastic chance for Sekisui House and Far East Organization to develop yet another remarkable residential home in the Upper Bukit Timah enclave.”
He also mentioned that The Reserve Residences, also in the Hillview region, will open in the first quarter of 2023. Mr Mak stated that the winning bid was less than the $1,068 psf ppr land rate for neighbouring condominium Midwood, which was awarded 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. However, Edmund Tie’s head of research and consultancy, Mr Lam Chern Woon, believes developers may be apprehensive about future development on the Dairy Farm Walk property, which was awarded in March for a slightly lower $980 psf ppr.
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