The tender for the development of a residential site at Alexandra Road closed on Tuesday with seven bids, the Urban Redevelopment Authority (URA) said.
The top bid of $396 million was jointly submitted by Sunmaster Holdings, Intrepid Investments and Garden Estates Limited. These are units of City Developments, Hong Leong Group and Hong Realty respectively.
The bid translates to $8,120.08 per sq m.
Tanglin Land submitted the second highest bid of $363 million, while Sherwood Development sent the third highest bid of $339.5 million. The lowest bid of $318.3 million was handed in by Multi Wealth (Singapore).
While the number of bids was fewer than analysts had expected, the margins between the bid prices were slim. The top bid was only 9.1% and 16.6% higher than the second and third highest bids.
"The keen interest and bidding by the consortium is spurred by the rare availability of an attractive site situated in a convenient and established location at the city fringe area that is generally popular with homebuyers/investors," said Ms Chia Siew Chuin, Director of Research & Advisory at Colliers International.
Analysts estimate the breakeven price for the site is around $1,300 psf.
Mr Li Hiaw Ho, Executive Director at CBRE said developers can build a high-rise project of over 40 storeys of some 550 apartments at the 99-year lease site.
Launched on October 17, the property measures 9,952.6 sq m with a maximum permissible gross floor area (GFA) of 48,768 sq m. It is located near the Redhill MRT station.
URA said it will award the tender after evaluating the bids.
Source: Channel News Asia
According to previous reports, the said site has a plot ratio of 4.9 and a maximum GFA of 524,936 sq ft, yielding between 540 and 580 units in a development that can be built up to 45 storeys.
Units at the neighbouring condo project Ascentia Sky were reportedly transacted at an average price of $1,381psf in the last six months, while units at Metropolitan Condominium, 100m away, transacted at $1,313psf.