Closing in with a total of 7 bids, the tender for the Kampong Java Road residential site officially closed on January 15, 2019. The top and winning bid which was submitted by CELH Development was at $418.8M. Coming in close at 2nd position was Guocoland with $417.2 million. Note that CELH is one of the units that belong to the renowned Chip Eng Seng Corp.
Kampong Java Bid by Chip Eng Seng
This prime property which is located in district 9 is just a few minutes from Newton MRT station. If the private residential piece of land can be developed and turned into a new private condo, it will certainly attract many interested parties. With a maximum gross area of about 350, 914 square-feet, this site should be able to hold 436 units. According to Colliers International’s Tricia Song, the top bid was unexpected which could translate that developers are more cautious now.
Chip Eng Seng Condo Near to Newton and Orchard
According to the Head of research and senior director of Knight Frank Singapore, Lee Nai Jia, this piece of land is found in an ideal location that appeals to the working class, especially those who are at Novena Medical, Orchard Road, and the CBD.
It should be noted that new guidelines for the minimum-average unit-size were announced in October last year. With the introduction of the latest guidelines, this property was the first type of private residential land on the government land sale (GLS) list to be launched.
GLS Site at Kampong Java
Analysis by most real estate developers indicates that the top bid for this property was relatively low. Comparing the psf ppr of Kampong Java GSL site to other properties, there is no doubt that it ranks low. This site has $1192 psf-ppr compared to $1540 psf-ppr for the GLS site at the Fourth Avenue. On the other hand, the Jiak Kim Street land which was bought by the Frasers Property in December 2017 has $1733 psf-ppr.
According to Song, the Kampong Java piece of land is expected to break even at around $1,700 per square feet. In addition to that, its selling price per square feet is expected to range between $1900 and $2000.
Chip Eng Seng is a renowned corporation that has successfully launched several projects in the past, including Park Colonial. So, the purchase of this new property sets it ahead of its competitors and it’s ready to flourish in the real estate market. This is a prime location and the development of new units will offer supply to investors as well as interested homeowners.