Chief Executive of Frasers Centrepoint Singapore announced the acquisition of a property on Jiak Kim Street. The company came in with the highest bid of $955 million dollars. Originally, a very popular nightclub known as Zouk, this 13,482 sq ft site also has its own commercial first floor that will be fully utilized.
This 99-year-old property is considered a real gem with its amazing heritage and style. It sits on the banks of the Singapore River and is considered a rare find in its cosmopolitan setting.
Along with Frasers, Allgreen Holdings came in with the highest bid of $552.96 million dollars for a site on Fourth Avenue and is also 99-year-old property. Allgreen Holdings also picked up two other properties last week in Bukit Timah, one being the Royalville.
Both of these sites were on the Reserve List of Government Land Sales program and were set for bidding and all sealed bids would be opened for public view after only minimal bids were initially made. Research showed that by offering public tender and the closing of both sites seems to have helped with the competition for each one.
Many experts believe that Allgreen Holdings’ aggressive bidding on Royalville turned some developers away from bidding on the Fourth Avenue site. That said, there were 7 bidders which are considered a decent showing.
There is a feeling in the air that developers, across the board, think the market is recovering. It is believed that this incredible optimism grew from a positive economic analysis that is shared by many.
Although the Government has continued to warn about the high-risks of excessive bidding, there does not seem to be any signs of future bidding slowing down. Reports have shown that with the purchases on Jiak Kim Street and Fourth Avenue, bidders are very confident that the market is on its way back up and their outlook is very positive.
Breaking Down The Costs:
Frasers Centrepoint Ltd – 13,482 sq ft for $955 million breaks down to $1,732.55 per sq ft.
This is only 0.6 cents higher than the bid from Hong Leong Holdings.
Allgreen Holds – at 18,532 sq ft for $552.96 million breaks down to $1,540 per sq ft.
This is only 2 cents higher than the bid from Bukit Sembawang Estates.
Although warnings from the Government have been voiced, it seems developers are visualizing a growth in the market and have no plans on slowing down when bidding for other properties. Only time will tell if their foresight will help or harm them.
Some of the new launch condos by developer, Fraser Centrepoint Singapore includes
Upcoming new condos by other developers