Upper Serangoon Crescent’s top bid a mere $270.28m

This is equivalent to $291 per sq ft ppr and is the lowest unit land price recorded since August 2009.

According to Colliers International, the close succession of tender closings for the subject site and a similar plot at Punggol Way/Punggol Field could have contributed to the tepid response to the subject site.

Here’s more from Colliers:

The top bid of $270.28 million ($291 per sq ft per plot ratio) and the lukewarm three-party contest seen for the tender of the non-landed residential site on Upper Serangoon Crescent/Upper Serangoon Road reinforce developers’ increasingly cautious market outlook amid heightened market uncertainties.

The close succession of tender closings for the subject site and a similar plot at Punggol Way / Punggol Field (tender closed on 1 September) could have contributed to the tepid response to the subject site. Both plots of land are located within the north-eastern Punggol/Sengkang/Buangkok/Upper Serangoon suburban neighbourhood.

The top bid of $291 per sq ft ppr is the lowest unit land price recorded since August 2009 – when the private residential property market was just in the nascent phase of recovery after hitting the trough. In August 2009, a non-residential site situated at Chestnut Avenue was sold to City Development Limited and the Hong Leong Group for $280 per sq ft ppr.

The top bid of $291 per sq ft ppr is also about 9.1% lower than the $320 per sq ft ppr achieved for a non-landed residential plot located nearby at Serangoon View when it was sold to a consortium including Frasers Centrepoint, Far East Civil Engineering (Pte.) Limited and Sekisui House, Ltd. in November 2010.

Based on the land cost of $291 per sq ft ppr and the prevailing average selling price of newer units located in the area, a new project at the subject site could break even in the region of $600 per sq ft. This should provide the developer some level of safeguard amid signs of a softening market.

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