UOL makes top bid of $648 psf ppr for Bartley site

It sees strong demand from Paya Lebar, Serangoon, Hougang areas


The first state tender this year for a private housing site may reflect a divergence in views among property developers amid an uncertain market outlook.

UOL’s top bid of $648.30 per square foot per plot ratio (psf ppr) for the site near Bartley MRT Station was just 3.7 per cent higher than the second-highest offer of around $625 psf ppr by EL Development. However, the top two bids were quite far apart from the other five.

Noteworthy was the sixth-position bid of $463 psf ppr by a partnership between City Developments Ltd (CDL) and TID. The two had earlier teamed up with Hong Leong Holdings to clinch two nearby sites. Together they had shelled out nearly $621 psf ppr at a tender that closed in March 2011 for the next-door site, which is now being developed into Bartley Residences. In January 2012 – the month after the additional buyer’s stamp duty was rolled out – they paid a much lower price of $495 psf ppr for a nearby plot, which they are developing into the Bartley Ridge project.

At yesterday’s tender for a site facing Upper Paya Lebar and Bartley roads, the lowest bid was $340.23 psf ppr.

Robert Kuok’s Allgreen Properties offered $469 psf ppr and Chip Eng Seng (which is involved in construction and property), nearly $548 psf ppr. A partnership involving Frasers Centrepoint, Far East Organization and Sekisui House bid $570 psf ppr.

Liam Wee Sin, UOL Group president (property), said: “We see strong potential demand coming from the Paya Lebar, Serangoon and Hougang areas which have very little supply stream.”

The site can accommodate a 17-storey project with about 700 units, he added.

“Given its city-fringe location and connectivity to the MRT lines, it will also appeal to a wider pool of buyers. The government’s plan to free up the Paya Lebar airbase for new homes, offices and industrial buildings is also an exciting growth story for this area,” said Mr Liam.

Source: Business Times – 15 January 2014

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