A RESIDENTIAL site in Potong Pasir attracted 13 developers, with Santarli Corporation topping the bidders with an offer that beat expectations.

 

The investment holding company lodged a bid of $114.8 million or $628.2 per sq ft per plot ratio (psf ppr) for the plot in Pheng Geck Avenue.

 

OUE Reef Development was next at $113.75 million, just $1.05 million behind.

 

The lowest of the 13 bids for the 99-year leasehold site near Potong Pasir MRT station came from Vantage Properties at $92.5 million or $506.2 psf ppr.

 

The 4,850 sq m plot can be used for condominiums, flats or serviced apartments and possibly some strata-titled landed homes.

 

The development can go as high as five storeys with a maximum of 242 units.

 

Consultants said the top bid works out to an estimated breakeven price of between $1,000 and $1,100 psf with selling prices estimated at $1,200 to $1,400 psf.

 

'Bidding and participation level was more or less within expectations although the top bid was at the higher end,' said Credo Real Estate executive director Ong Teck Hui.

 

Experts said the strong interest was due to the plot's good location.

 

ERA Realty Network key executive officer Eugene Lim noted: 'The site attracted 13 bids primarily because of its city fringe location and the fact that it is near St Andrew's Village and the Stamford American School just down the road.'

 

DWG's senior manager of research and consultancy, Mr Lee Sze Teck, added that recent development activity nearby could have pushed up its appeal.

 

'The Potong Pasir area is undergoing a rejuvenation in the past two years with new residential project developments,' he said.

 

'Projects in the area have also done well, with Nin Residence almost 85 per cent sold and 18 Woodsville 77 per cent sold as of May 2012.'

 

Mr Lim added: 'The land opposite the Pheng Geck Avenue site, next to Potong Pasir MRT station, is zoned for commercial development and a shopping centre the size of nex may be built.'

 

This is the third site in Pheng Geck Avenue that the Government has sold in the past two years - and also the priciest in terms of psf ppr, said Mr Nicholas Mak, executive director at SLP International Property Consultants.

 

Qingjian Realty secured one of the sites with a bid of $607.23 psf ppr in June 2010 while Tuan Sing Holdings landed the other one for $567.31 psf ppr last August.

 

'The higher land price of (this latest site) will give Tuan Sing Holdings more flexibility in the pricing strategy for its project,' Mr Mak said.