Original article from Channel News Asia published on 5th Dec 2017.

Tenders for two residential land parcels at Jiak Kim Street and Fourth Avenue closed on Tuesday (Dec 5), with the former receiving a top bid of S$955.4 million and the latter drawing a top bid of S$552.96 million, according to the Urban Redevelopment Authority (URA).

The land parcel at Jiak Kim Street, which is the former site of popular nightclub Zouk, drew a total of 10 offers while the site at Fourth Avenue drew a total of seven bids.

Map of Jiak Kim Street Site by CNA

The sites at Jiak Kim Street and Fourth Avenue were launched for public tender on Oct 19 and Nov 2, respectively. Both sites were offered for sale on 99-year leases.

The highest bid for the 13,482 sq m site at Jiak Kim Street, which works out to S$1,732.55 per square foot per plot ratio (psf ppr), came from Frasers Centrepoint Limited. It is the highest unit land price achieved on a per square foot basis for government land sites sold (excluding commercial and white sites).

The highest bid for the 18,532 sq m Fourth Avenue land parcel was from Allgreen Properties, reflecting a land rate of S$1,540 psf ppr. The developer secured the freehold sites at Royalville and Crystal Tower last Friday, and is now eyeing a third site along the same Bukit Timah stretch.

The sites at Jiak Kim Street and Fourth Avenue were originally on the Reserve List of the Government Land Sales Programme.

“Both the Jiak Kim and Fourth Avenue sites were hotly contested with benchmark prices set for both locations,” said Christine Li, research director at real estate firm Cushman & Wakefield.

“The developer is probably pricing in a slight appreciation of around six to seven per cent for the selling prices of the future development. This is somewhat in line with the market expectation that prices of new homes will rise by around five to 10 per cent next year,” Ms Li added.

Head of research and consultancy Tay Huey Ying at real estate agency JLL said: “Of interest is that local developers continue to maintain their hold on the prime district market, pipping foreign developers such as China’s CSC Land and Hong Kong tycoon Li Ka-shing’s Japura Pte Ltd for the two sites at Jiak Kim Street and Fourth Avenue, respectively.”

URA accepted applications for the sale of the two sites at Jiak Kim Street and Fourth Avenue on Sept 29 and Oct 31 respectively.

A decision on the award of the tenders will be made after the bids have been evaluated.