Hougang Avenue 2 site receives $207.5mln as highest bid

The Urban Redevelopment Authority has closed the tender for the Hougang Avenue 2 residential site, with the highest bid coming from MCL Land (Serangoon) Pte Ltd.

Ranked second among the tenderers was Frasers Centrepoint Limited with tendered sale price of $189,288,000.

The 30,195.5 sqm land parcel has maximum permissible GFA of 42,274 sqm.

Li Hiaw Ho, Executive Director, CBRE Research, commented, "While the number of bids, at seven, are within expectations, the bid prices are fairly bullish. The top bid of $207.5 million or $456 psf/plot ratio will translate to a breakeven cost of about $780 to $800 psf for a low-rise condominium project. The new project could probably fetch around $900-$950 psf when launched in 2011."