On 3 May 2017, the Urban Redevelopment Authority (URA) has awarded the tender for the 99-year leasehold residential site at Tampines Avenue 10 (Parcel C) at a price of $370.1 million to Bellevue Properties Pte. Ltd.
Bellevue, a subsidiary of City Development Ltd (CDL), submitted the highest bid in the tender for the site. At the close of the tender on 25 April 2017, the site attracted nine different bidders and CDL came out top in the hotly contested tender. CDL $370.1 million was 5.7% higher versus the second highest bid of $350 million from Kingsford Development Pte Ltd.
While nine bidders could be considered a good turnout, it was still fewer than what the industry experts had expected. This could be attributed that developers are being drawn to attractive sites in central locations such as in Stirling Road and Lorong 1 Realty Park.
Although the total number of bidders was less than expected, the bids put forth were no less bullish than recent tenders in District 18.
The top bid from CDL was bullish as it was 17.2 per cent higher than the land price paid by MCC Land for the nearby land parcel which The Alps Residences is being built.
The winning bid translates to a land rate price of about $565 per square feet (psf) per plot ratio. It is estimated the project could be launched at prices between $1150 to $1200 in the middle of 2018.
Although there are two nearby projects, The Alps Residences and The Santorini by MCC Land, it is not likely for both projects compete with the future development as they are expected to be substantially sold by the time the new project by CDL is launched.
Attractive residential site in established Tampines estate
CDL believes the Tampines Avenue 10 residential site has an attractive location in the established Tampines estate and is close to the upcoming Tampines West MRT station, part of the Downtown Line which will open in late 2017.
The huge land size of 21,717.7 square-metre (233,769 square-foot) will give CDL an opportunity to create a unique landscaping that will include a childcare centre on site. CDL intends to build a premium suburban condominium of about 15 storeys and 800 units. All units are expected to enjoy a North-South orientation.