Friday, June 01, 2012

Boon Lay Way site hotly contested, draws 12 bids

The tender for a residential site (pictured) at Boon Lay Way (Jurong Gateway) received a total of 12 bids, an indication that land sites in strategic locations can still yield record high offers.

“The response by developers shows emphatically that a well-located site surrounded by amenities will still bring in much interest,” said Chia Siew Chuin, Director of Research & Advisory at Colliers International.

MCL Land Ltd offered the highest bid at S$369.39 million, which works out to around S$705.10 psf ppr, while the lowest offer was submitted by Vantage Properties Ltd at S$251 million.

“Among the 12 bids, there are some signs that developers are divided on the immediate prospects of the residential market as the variation between the top bid and lowest bid is some 47 percent,” Chia noted.

She added that the top bid was the second highest unit land price “achieved for a private non-landed residential site in 2012 after the S$880.74 achieved by the 96,423 sq ft site located at Jervois Road in February 2012”.

Other bidders for the site include EL Development, OUE Reef Development, Orchard Properties, and a joint offer by Sim Lian Land and Sim Lian Development.

Launched for sale on 30 April 2012, the 99-year leasehold site has a total area of 11,588 sq m with a maximum permissible gross floor area (GFA) of 48,670 sq m. It is located in the heart of Jurong East HDB town and within the Jurong Gateway zone. The site is also within close proximity to two retail malls – Jem and the upcoming Westgate mall – as well as to two hospitals – Ng Teng Fong Hospital and Ng Teng Fong Community Hospital.

Li Hiaw Ho, Executive Director at CBRE Research, said the location is part of the Jurong Lake District, which the government is planning to transform into a unique waterside destination for business and leisure activities in the next 10 to 15 years.

“Although this is the third site in Jurong Gateway to be put up for tender, it is the first residential site to be sold. The number and the quantum of the bids reflected developers’ confidence that there will be a strong demand for private housing in this location.”

The Urban Redevelopment Authority (URA) said a decision on the award will be made at a later date after all the bids have been evaluated.

View the original article here

Source From Property Guru

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