The one-north Gateway site received nine bids at the close of the tender on Sept 5. The top bid of $155.7 million was submitted by TID Residential, a unit of TID Pte Ltd (a JV between Japanese developer Mitsui Fudosan and Hong Leong Holdings). The bid price by TID translates to a land cost of $1,001 psf ppr. The nine bids received for the one-north Gateway site came as no surprise as it’s the smallest site on the Confirmed List, with the potential to yield about 165 units. “It’s a palatable development quantum which appeals to more developers,” says Tricia Song, Colliers Intl head of research for Singapore. The risk of not being able to sell out the units in the project within the five-year timeline is also reduced, she adds. Song reckons the breakeven price for the new project to be in the ballpark of $1,500 to $1,550 psf. Assuming a minimum average unit size of 85 sqm for the new project, the developer could be looking at selling prices north of $1,600 psf, she estimates.... Continue Reading