Bullish Bids for Residential Plots at Perumal Road
The Perumal Road site is showing clear signs of developers hungry for sites as bullish bids are lodged for its residential plot.
The plot was released for Government Land Sales (GLS) in 29 November 2016 by Urban Redevelopment Authority (URA). A total of 11 bids were lodged including an offer of $174.08 million from Low Keng Huat (Singapore) Limited. The tenderers also include renowned developers Allgreen Properties Limited, MCL Land, Hoi Hup Realty Pte Ltd etc. The award of tender to its highest bidder, Low Keng Huat (Singapore) Limited has been confirmed by the URA.
This Perumal site that has room for 200 private apartments and commercial space on the first floor was expected to attract a lot of interest since it released for sale in November 2016. The amount of bids being lodged for sites at the Perumal Road is not surprising as developers have become quite aggressive. The reason behind the aggression of developers is the fact that Government has reduced the supply of development sites to stabilize the property market. As a result, bidders continue to lodge offers above market rates in order to ensure their win over government tenders. Experts say that developers are clearly looking to refresh their depleting inventory through the Perumal Road.
The Perumal road is quite lucrative when it comes to real estate. The location provides great transport connectivity. The access to Farrer Park MRT station makes it reliable and attractive for residents. Apart from that, the location also provides easy access to Central expressway and Pan Island Expressway, which are feasible for private transport. Commercial amenities like the City Square Mall, Mustafa Centre, Farrer Park Hospital and Medical Centre also add to the urban aspect of the location. The Centrium Square is going to open up soon as well, enhancing that aspect even more.
The Perumal Road site is also very close to the Farrer Park MRT station so the price premium is likely to be expensive. This fact is probably not helped by the excess amount of commercial amenities available around the area. All in all, the location is quite feasible for residential developments and is likely to be attractive for property seekers due to its various benefits.
At a bidding price of $174.08 mil for the land parcel which translated to $1,000.7 psf ppr (per square foot per plot ratio), the Perumal Road land parcel was actually bidded more than $200 psf ppr higher than the residential plot at Sturdee Road. The Sturdee Road land parcel (named as Sturdee Residences) was released in February 2015 under GLS and the land tender was awarded to Sustained Land’s SL Capital Private Limited at $787 psf ppr.
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