Saturday, June 02, 2012

Sengkang site attracts top bid of S$383.3m

The Housing and Development Board (HDB) received a total of five bids for a residential site (pictured) at Sengkang Square / Compassvale Drive, with the top bid of S$383.3 million offered by EL Development Pte Ltd.

Put up for tender on 16 April and slated for condo or flat development, the site measures 22,497.6 sq m and could yield around 710 units. With prior approval, the 99-year leasehold site may also be developed into a combination of flats and strata landed houses.

The second highest bidder was White Haven Properties Pte. Ltd., which offered S$348 million. This was followed by OUE Reef Development Pte. Ltd. (S$340.1 million), Opal Star Pte. Ltd; and Binjai Holdings Pte. Ltd (S$328 million); and Singland Development Pte. Ltd. and UOL Venture Investments Pte. Ltd (S$301.8 million).

Chia Siew Chuin, Director of Research & Advisory at Colliers International, noted that response for the site was “relatively lukewarm” compared to the 12 bids received for a residential site at Boon Lay Way (Jurong Gateway) on Tuesday. Colliers said this was due to the availability of many well-located condominium sites whereby the tenders will close next month.

“Nevertheless, EL Development Pte Ltd put in an optimistic bid, topping the five-way tender at S$383.33 million or S$527.65 psf per plot.”

Joseph Tan, Executive Director, Residential at CBRE, said: “Although only five bids were submitted for this site, the quantum of the bids signifies developers’ confidence in mass-market housing and in sites that are located near MRT stations.”

Tan added that the top bid could translate to a breakeven cost of between S$900 psf and S$950 psf.

The HDB will announce the successful tenderer after all the bids have been evaluated.

Meanwhile, the Urban Redevelopment Authority (URA) has announced the final tender results for the Boon Lay Way (Jurong Gateway) site.

MCL Land Limited won the tender after offering a top bid of S$369.388 million, which works out to around S$705.10 psf ppr. The 99-year leasehold site is estimated to yield 590 units.

View the original article here

Source From Property Guru

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