Fierce bidding for Margaret Drive condo site

Fourteen land-hungry developers contested for a condominium site on Margaret Drive at the tender closing yesterday. MCL Land emerged as the top bidder with its offer of $238.4 million, or $998 psf per plot ratio. This works out to nearly 8% higher than the next highest bid of $925 psf ppr by Allgreen Properties.

Based on the land tender price, the breakeven price is estimated to be in the $1,450 to $1,550 psf range. The site can yield around 275 homes. Desmond Sim, CBRE's head of research for Singapore and Southeast Asia, says the palatable quantum for this site allowed for a higher winning margin.

Last year, HY Realty paid $871 psf ppr for the Dundee Road site next to Queenstown MRT station, which is being developed into Queens Peak condo. The project was launched in November and around 270 units have been sold to-date at a median price of $1,627 psf.

UOL came in third in yesterday's tender closing with an offer of $921 psf ppr, followed by Tuan Sing Holdings, Far East Organization and Sekisui House tie-up, China Construction, Low Kheng Huat and Frasers Centrepoint. The median bid for the site works out to $881 psf ppr.

"The developers which participated in the tender were from a wide variety of nationalities which shows their continued confidence in the residential market even as it is challenged by cooling measures," Sim adds.

The land parcel was triggered from the Reserve List of the Government Land Sales Programme after a developer committed to a minimum bid of $185.76 million last month.

Site location

Source: URA

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