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News Release


Tender Results for Jiak Kim Street and Fourth Avenue GLS Land Parcels

In spite of the MAS’ recent note of caution to developers to be mindful of the supply coming on stream from the string of collective sales sealed since mid-2016, developers’ hunger for land sees them contesting keenly for both the Jiak Kim Street and Fourth Avenue sites today, with the gap between the top two bids for both parcels falling within a narrow band of 2%. Benchmark price also continued to be set with the $1,733 per sq ft per plot ratio top bid submitted by FCL Residences Pte Ltd for the Jiak Kim Street site being the highest achieved for a pure residential and residential with commercial on the first storey site, toppling the last high of $1,239 per sq ft per plot ratio achieved for the Martin Modern site in June 2016.

Nonetheless, the batching of tender closings appeared to have helped spread the competition for each site, and potentially taming the bids somewhat.  Both sites attracted ten bids and below today and this is the first time since May 2017 when a GLS residential land tender attracted less than ten bids.  In May 2017, the Tampines Ave 10 site attracted nine bids.  

Moreover, the price that Allgreen paid for today’s Fourth Avenue site at $1,540 per sq ft per plot ratio was 21% below the price that they paid for the neighbouring freehold Royalville site, at $1,960 per sq ft per plot ratio, which set the new benchmark in the Fourth Avenue area. 

The tender results reflect developers’ preference for the Jiak Kim Street site as it drew a higher number of participants with the top bid coming in at 39% higher than its reserved price compared to 23% for the Fourth Avenue site.   

Of interest is that local developers continue to maintain their hold on the prime district market, pipping foreign developers such as China’s CSC Land and Hong Kong tycoon Li Ka-shing’s Japura Pte Ltd for the two sites at Jiak Kim Street and Fourth Avenue, respectively.