Fourth Avenue Site sold for $533m
Developer Allgreen Properties won its third site at Fourth Avenue along Bukit Timah Road with a winning bid of $553m or $1,540 psf ppr.
The developer had also placed bullish bids for Royalville previously at $1,960 psf ppr. This raised expectations of the land bids for this site and as a result, the site did not receive as many bidders as previously expected.
“Assuming developer’s profit margin is around 10% of the gross development value, the new development will have to sell at around $2,250 psf.” Cushman & Wakefield research director Christine Li said.
Although most projects in the locality are of freehold status, the location of the Fourth Avenue site is good enough to offset the leasehold status. Fourth Avenue Site is located right next to the Sixth Avenue MRT station and also within close proximity to several schools such as Nanyang Primary School, Raffles Girls’ Primary School, Hwa Chong Junior College.