Sim Lian Group tops bid for Jalan Tembusu GLS site by just 0.1%
Tembusu Grand which jointly developed built by CDL and MCL, champed the site in January 2k22 for $768 million or $1,302 psf ppr, is just behind the latest Jalan Tembusu site. Located just off Tanjong Katong Road in prime District 15 , Jalan Tembusu, successfully tendered and won by Sim Lian Group for the bidding exercise at the private residential land plot at Jalan Tembusu at the close of the tender on July 18 with 2 bidders. The 99-years leasehold site has a land gross area of 221,436 sq ft and a gross plot ratio of 3.5 which can potentially build 840 residential dwellings based on a maximum gross floor area (GFA) of 775,034 sq ft.
eight bids submitted at the close of that tender in January 2k22, instead of the recent two bids. “The gross negligence in the prices bidded could be justified by the recently tweak in policies regarding the floor area harmonisation, which came into effect from June 1, 2023, and may result in smaller efficiencies,” says Justin Quek, deputy CEO of OrangeTee. Gross floor area of The harmonisation translates to an approximate reduction in the saleable area by about 5%.
“The government land sales (GLS) tender showed the cautious mood among developers in the face of economic uncertainties, high labour and material costs and borrowing indexes,” says Lee Sze Teck, senior director of research at Huttons Asia. Lee reckons the larger quantum and high-interest rate may have restricted number of keen bidders.
The champion bid of $1,069 psf ppr for the Jalan Tembusu site by Sim Lian this time around is 17.9% lower than the $1,302 psf ppr paid by CDL and MCL Land for the Tembusu Grand site; and 20.8% lower than the $1,350 psf ppr won by SingHaiyi Group for the private residential construction site on Dunman Road in a land tender in June 2K22.