The bidding was fierce and competitive, though measured, regarding a site for mixed usage in the Alexandra View area near to the Redhill MRT station. The winner of the tender is Tang Skyline and the second highest bidder is Singland Homes and UOL. This plot of land should be ideal for tenants looking for a development as the city fringe as this is right next to Redhill MRT Station as well. The tender for Tang Skyline Alexandra View Condo is called Artra Condo.
There were ten Tang Skyline Redhill Condo bidders with the tender closing yesterday. The highest bid reached $376.88 million, or about $851 per square foot per plot ratio, which was given by Tang Skyline, that is part of Tang City Holdings. This is the first plot of land to be launched under the Government Land Sales Programme for second half of 2015. Analysts see this as a concentration of developer’s bids as there are more developers who are trying to increase their land banks combined with a reduction of land sales to maintain property prices in Singapore.
Analyst see this as one of the lands with the highest competition considering that there are adjacent plots of land with units that are left unsold. The Redhill and Tiong Bahru areas area traditionally the city fringe areas and many buyers are skeptical to enter the market at this point of time due to the Total Debt to Service Ratio. There are also restrictions on this plot of land as there are not to be too small units as due to the fact that there are too many small units in the area. Therefore the estimated number of units that can be built is 400 units.
Tender for Tang Skyline Redhill Condo
The Top developer for the project, Singland homes and UOL narrowly beat their competitor by a small margin. Their bid of $851 psf ppr narrowly outshine the next bid at $842 psf ppr. This is only less than 5% and considered a narrow win according to many analysts.
Developers are wary of the location nowadays as there remain many properties unsold in the area. For example, there are still many units in the nearby Principal Garden and Echelon and previous buyers who are genuinely interested in the area have already bought a property there. Therefore, the developer might have lost out in terms of the timing. Nevertheless, as Artra Redhill MRT Condo is located right next to Redhill MRT, the developer is optimistic that it will receive good response for this project.
Tang Group of Companies Artra Condo
The next most recent area that received a tender was the Principal Garden area, which brought in $821 per square foot per plot ration, but the land is much further from the MRT station.
The bidding that was restrained is evidently visible in comparison to the $970 per square foot per plot ratio that was received for the close Alex Residences area in the month of December for the year of 2012, which thus reveals how much the prices of land have dropped recently.
The appears to be restriction on the size of each residential unit of the development as the government plans indicate that there is not to be more than 400 units in the development. Considering that buyers are now price conscious and many are more worried about the quantum than the psf, there may be a more muted response for the project even though it is a mixed development.
Tang Group Redhill MRT Artra Condo
However, it would be possible for a developer to still be able to construct some nice smaller units and some larger units, to balance things out.
The site makes provision consecutively for both flats and serviced apartments in Tang Group Condo. According to real estate experts, it is seen that the developer break-even price is $1,350psf to $1,400psf including construction cost.
A comfortable profit margin for the developers could be had based on the comparable prices in the vicinity for new condominiums, which range from $1,530 to $1,950 per square foot.