HY Realty Wins Dundee Road Site With $483m Bid
Tender for residential site at Dundee Road located next to Queenstown MRT station closed on 23 June 2015. The land parcel at Dundee Road has been awarded to top bidder HY Realty, subsidiary of Chinese developer Hao Yuan Investment, at S$483.2 million on 30 June 2015. This land parcel attracted a total of 9 bidders. With a maximum gross permissible floor area (GFA) of 51,529 square metre / 554,658.16 square feet, this works out to $871 per square foot per plot ratio (psf ppr).
The 99-year leasehold site with a land size of 10,516.1 square metre / 113,195.30 square feet is able to yield an estimated 645 private residential units.
HY Realty’s top bid is 8% higher than the 2nd-highest bidder, Allgreen Properties at $803.95 psf ppr and 10.4% more than conglomerate Hong Leong Holdings, CDL and Hong Realty at $780.26 psf ppr bid. The lowest bid was offered by Cheung Kong Holdings’ subsidiary Japura Development at $506.63 psf ppr. The offer by HY Realty reflects the potential in the mature Queenstown estate as the site is close to a plethora of amenities and is strategically situated next to the Queenstown MRT station.
This Dundee Road site at $871 psf ppr is 1.38% lower than Commonwealth Towers, an adjacent new condo launch, at $883 psf ppr.
Within the same district 3 in Alexandra, another developer who managed to purchase a land parcel at a most attractive bid a year before in 2014 is UOL. UOL bought its Prince Charles Crescent Parcel B Tender site at $821 psf ppr and new launch Principal Garden will stand tall at this site. Potential buyers have a choice of having the serene Alexandra Park Connector view or the Good Class Bungalow cum Botanic Garden view.
According to a HY Realty spokesman, the Dundee Road site is estimated to launch in the 1st quarter of 2016. HY Realty has been actively participating in state tenders as it is hungry for land and it is their intention to move away from suburban area to city-fringe homes. The winning of the Dundee Road site is in line with the company’s new focus as the land parcel is in the Queenstown Planning area, in the Central Region of Singapore.
JLL head of research for SEA Chua Yang Liang estimates that the developer HY Realty may be looking at a selling price of between $1550 to $1600 psf if taking construction cost to be between $320 and $350 psf.