FNN Properties tops Yishun HDB bid at $1.43b

It beat 4 other bidders.

According to OSK, FNN Properties won a HDB land sales at Yishun yesterday, with a winning bid of SGD1.43bn (implied SGD 1,078psf) or 48% higher than the next highest bidder (Far East at SGD 731psf) out of total of 5 bidders.

Here's more:

It is also 36% higher than previous mix-use tender at Yishun Ring Rd site won by CEL Property (SGD 794psf in Jan-13, yet to launch).

We strongly suspect the low number of bidders is driven by specifics of this site as it mandates a combination of Residential and Retail, plus a community centre and a Bus Interchange.

The aggressive bidding by FNN is understandable as plot is adjacent to NorthPoint (cap value SGD 2,415psf based on gross rental of SGD 16.6psf) which has one of the highest average retail traffic count at 3.4mil per month.

The ASP for residential is likely to be high at SGD 1,800psf, but good plot location beside Yishun MRT should ensure good subscription in our view.