As reported by the Urban Redevelopment Authority recently, the tender for a residential site, Parcel B, located at Jurong West Street 41 with a 99 year leasehold, has closed this past Tuesday after it had secured 9 bidders.
The site was launched for sale in December of 2014, offering a space of 17,803.5 square meters. This equates into a permitted maximum GFA (gross floor area) of 49,850 square meters.
Of these 9 bids, it was MCL Land (Vantage) who submitted the top bid for $338.12 million, an amount that equates to about $6,782.71 per square meter on the gross floor area scale in Kingsford Waterbay.
Kingsford Waterbay in Serangoon
Coming in at second place in the bidding war was HY Realty who offered $317.9 million. Allgreen Properties came in at the lowest bid offered for $222.89 million.
Desmond Sim, the CBRE Research Head of South East Asia and Singapore, has pointed out that the robust demand we have seen for this site is proof of bidder’s confidence even in the face of cutbacks that have been made by the Government Land Sales Programme’s number of residential sites coming out.
Kingsford Waterbay further points out that MCL’s bid, the highest one of the 9, is 21% higher than the 9 bidder’s average bids.
Waterbay Condo by Kingsford Development
Sim stated that MCL puts forth a strong presence for this area and it appears they are intent on further establishing their foothold with their latest bid for this site. This has set a foundation price with Lakeville and J Gateway and it looks as if MCL is now poised to reap benefits from the benchmark prices it has set. It’s quite possible that MCL will gain some advantage from this longer incubation period, allowing it to weather the present conditions of the market.
The site, which overlooks Jurong Lake, is situated inside of an already established residential sector. Condominium developments such as Kingsford Waterbay exist there already include Caspian, Lakepoint, Parc Vista, Lake Holmz, The Lakeshore and the soon to come Lakeville.
The land parcel is also within close proximity to the Lakeside MRT station along with areas that offer entertainment, shopping and dining options in Westgate, Jurong Point, Jem and JCube.
According to URA the awarding of the sites tender will be decided once all of the bids have been evaluated.