Analysts see Eco World’s $208m Sin Ming bid as an outlier

The top offer was 11.1% above the next bid, whilst six other bids fell below an earlier benchmark.

Eco World Development (S)’s $208.1m top bid for a residential site at Lorong Puntong/Sin Ming Avenue reflects strong interest in its location, but analysts say the offer stands apart from the rest of the field.

The bid, equivalent to about $1,612 per square foot per plot ratio, was the highest of seven submitted when the government land sales tender closed on 15 September. It was 11.1% above the second-highest offer of $187.3m from Intrepid Investments and TID Residential.

The Urban Redevelopment Authority said it has yet to award the site and will announce its decision after evaluating the bids.

If accepted, Eco World’s offer would exceed the $1,515 psf ppr paid for the Berlayar Drive site in August, setting a new land-rate benchmark for a purely residential government land sales site in the Rest of Central Region.

PropNex Head of Research and Content Wong Siew Ying said the gap between bids deserves attention. The other six offers were all below the Berlayar Drive rate, suggesting that Eco World placed a higher value on this particular plot than its competitors did.

Knight Frank Singapore Head of Research Leonard Tay similarly said the top bidder appeared to see greater strategic value in the location. He attributed the seven bids partly to the site’s small scale, which made the total capital outlay more manageable for developers.

The plot could yield about 140 private homes. It sits opposite Ai Tong School and within walking distance of Bright Hill MRT station, which currently serves the Thomson-East Coast Line and is planned to become an interchange with the Cross Island Line.

Realion Deputy Group CEO Justin Quek said the location could appeal to families, whilst firm resale prices in Bishan and Ang Mo Kio may support demand from HDB owners looking to upgrade. He also identified owners of nearby landed homes seeking smaller properties in the same neighborhood as potential buyers.

PropNex and CBRE estimate that a development built on the site could have an average selling price above $3,000 psf if the top bid is accepted.

That price would need to be tested against competing supply. PropNex said the upcoming Thomson Reserve development could absorb some demand from buyers seeking homes in the area.

Huttons Asia CEO Mark Yip added that the small project scale could limit construction savings and the range of condominium facilities offered to buyers.

For now, the seven bids show broad developer interest in the location, whilst the gap between Eco World’s offer and the other bids shows that developers differed sharply on its value.