Tender in Bishan receives record 19 bids

There is a 27% gap between the top bid of $550.1 million and the second bid.

According to Li Hiaw Ho, Executive Director, CBRE Research, the overwhelming response of 19 bids to the residential site at Bishan Street 14 showed that developers are optimistic about the residential market and the attractiveness of the site. It is one of the better located sites in the GLS confirmed list for H1 2011. The subject property is a short walk from Junction 8 shopping mall and Bishan MRT Station, which is an interchange station for the North-South and Circle MRT Lines. Popular schools like Catholic High School and Raffles Institution are also situated nearby. Due to the high plot ratio ascribed to the site, the future development can likely reach 40 storeys and residents living on higher floors can enjoy a good view as far as Macritchie Reservoir and Lower Peirce Reservoir.

He said: "The top bid of $550.1 million or $869 psf/plot ratio translates to a breakeven cost of around $1,300 psf. The gap of 27% between the top bid and second bid shows that the developer’s eagerness to clinch this site due to its strong location attributes."

"Based on caveats lodged in the period October 10 – January 11, units in Centro Residences at Ang Mo Kio Central were sold at $1,200 psf to $1,400 psf. The winning bid for the Bishan site suggests that the developer is looking to sell the units at around $1,400 psf."

"We expect the new project to be able to attract upgraders in Bishan, Toa Payoh and the nearby landed estates as well as farther afield when it is launched."