SINGAPORE, 3 November 2022 – Mr Lam Chern Woon (蓝振文), Head of Research and Consulting at EDMUND TIE comments on the GLS tender results for Bukit Timah Link and Hillview Rise.
Tenders for the Bukit Timah Link and Hillview Rise GLS sites closed today, a month after property cooling measures were announced at the end of September. In general, bid prices were fairly restrained, given the greater sense of caution overhanging in the market. The unceasing pace of rate hikes globally (just 75bps by the Fed yesterday) will also dampen market sentiment and affordability. Both sites were moderately contested, and closed with 5 and 4 bids respectively for the Bukit Timah Link and Hillview Rise sites.
The top bid of S$200 million or $1,343 psf ppr for the Bukit Timah Link site came in from Bukit One Pte Ltd (Bukit Sembawang Estates Limited), 15.7% higher than the second bid of $1,161 psf ppr from Winchamp Investment Pte Ltd, a subsidiary of Wing Tai Holdings. While the top bid was within our expectations, the other bids were considerably more restrained.
The Bukit Timah Link site enjoys proximity to bountiful amenities, future transport hub, nature hotspots such as Bukit Timah Nature Reserve and Rail Corridor, popular educational institutions such as Pei Hwa Presbyterian Primary School within 1 km and Methodist Girls School (Primary and Secondary) within 2 km, and a host of tertiary institution and international schools. It is a short walk from Beauty World MRT station on the Downtown Line. The Beauty World precinct is a perennial favourite hangout for food lovers and the upcoming transport connectivity improvements and retail offerings will rejuvenate the precinct. The neighbouring commercial clusters such as one-north, Jurong Lake District and Jurong Innovation District will also provide a stable pool of tenants to future residential projects. All in, the locality will be most attractive for families with young children, HDB upgraders and tenants. Attesting to the popularity of the locality, the projects launched earlier in the vicinity have been either fully sold or almost sold.
Located one MRT station away and in proximity to Hillview MRT station, the Hillview Rise site saw similar bidding activity closing with 4 bids, and with the top bid coming at S$320.8 million or $1,024 psf ppr from a joint venture between Far East Civil Engineering (Pte.) Limited and Sekisui House, Ltd. The top bid was followed closely by 3 other bids submitted by CDL, United Venture Development (a UOL-led consortium), and the Sim Lian Group. A relatively more tranquil site, the top bid of $1,024 psf ppr was 4.3% lower than the price paid in 2018 for the neighbouring GLS site along Hillview Rise (now Midwood). Considering the relatively close bids for this site (top bid was just 1.2% higher than the second highest bid), these reflected caution among developers in a considerably uncertain climate, and that rising interest rates could be perceived to have an impact on affordability and housing demand in the suburban market. Developers were likely also concerned about supply and price competition from the future development on the Dairy Farm Walk site, which was awarded in March this year at a significantly lower $980 psf ppr.
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Seah Li Ching (Ms)
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