Last January, Chip Eng Seng put in a tremendous bid for the Kampong Java land parcel in Singapore. At first glance, this would seem counterintuitive. However, this land has tremendous potential, and Chip Eng Seng realizes it. This is an important step for Chip Eng Seng’s property development interests. Here are some details regarding this important acquisition.
Tender for Kampong Java Bid Closed
The first part of this process was to open up the site for tendered bids. There is no question that this 125,000 would receive a lot of interest. They not only received seven bids, but the top bid of $418.8 million came from Chip Eng Seng Corporation unit CELH Development. They beat out the second-highest bid, which was submitted by GuocoLand in the amount of $417.24 million.
This site has a lot of development potential.
One of the reasons investors were willing to pay so much money for this site is because they realize the immense potential that it is. If the property is leveled correctly, it could easily be turned into a condominium lot of over 400 units. The fact that this land parcel is in such a central location was yet another factor that put it in high demand. The Kampong Java site is quite special indeed.
Kampong Java Bid at Newton MRT Station
First of all, the Java site is the first private residential sale that was listed on the government land sale (GLS). It was put up for sale after the minimum unit guidelines were announced on October 2018. However, developers were in a cautious mood, as many government officials noted that the top bid was below their expectations.
After analyzing the break-even price by this group, other property development experts estimated the break-even price would be about $1,700 psf. Thus, the selling price for the project could range from $1,900 to $2,000 psf. The fact that Chip Eng Seng was successful with their purchase of Park Colonial in July 2018 was a good sign for many investors as well.
Kampong Java Land Parcel For Sale
This Kampong Java land parcel is definitely some prime real estate, simply because it is located between the prime district 9 and the Newton MRT public transportation station. If you are employed with the Novena medical cluster, this proposed housing will definitely be great for all of your needs. CBD and Orchard Road individuals will find several benefits with this location as well. Homebuyers and investors will find this an appealing site for new housing, that is for sure.