reporter2
08-09-12, 15:11
http://www.straitstimes.com/archive/wednesday/premium/money/story/punggol-ec-site-draws-only-3-bidders-20120905
Punggol EC site draws only 3 bidders
Published on Sep 05, 2012
A PUNGGOL site slated for an executive condominium (EC) failed to live up to market expectations by attracting only three bids.
The top offer of $189.9 million, or about $314 per sq ft per plot ratio (psf ppr), came from Qingjian Realty (South Pacific) Group. The Chinese developer is behind several other Punggol projects, such as the fully sold RiverParc Residence EC and the recently launched River Isles condominium, now 70 per cent sold.
It will also launch another project, the Waterbay EC, next month.
Verspring Properties was the next highest bidder with an offer of $188 million, or about $311 psf ppr.
The lowest offer for the 99-year-leasehold site was a joint offer of $175.9 million from Opal Star and Binjai Holdings.
The 18,747.8 sq m site is bounded by Punggol Way and Punggol Walk, and next to the Tampines Expressway.
It was launched for sale by the Housing Board on July 23. The tender closed yesterday.
The site could yield about 560 units.
Mr Ong Teck Hui, national director of research, Singapore at Jones Lang LaSalle, said yesterday: "Tender participation is below expectations, especially since the Waterbay site at Punggol Central/Edgefield Plains attracted 10 parties earlier in March."
But he noted that Qingjian's bid is "within expectations" and in line with the $320 psf ppr fetched by the Waterbay site.
"Bidders for this site would have considered Waterbay's time advantage in sales launching as well as further competition from another EC site at Punggol Field Walk, to be put up for tender in October," Mr Ong said, adding that the Punggol sites could yield about 1,400 units in total.
He also noted that the site's proximity to the Tampines Expressway means units affected by traffic noise could be more difficult to sell and will have to be priced less optimistically.
Qingjian Realty told The Straits Times that it will launch the new EC project next March or April. The development will host mainly bigger units - three and four bedders - and will cost $750 psf on average.
AMANDA TAN
Punggol EC site draws only 3 bidders
Published on Sep 05, 2012
A PUNGGOL site slated for an executive condominium (EC) failed to live up to market expectations by attracting only three bids.
The top offer of $189.9 million, or about $314 per sq ft per plot ratio (psf ppr), came from Qingjian Realty (South Pacific) Group. The Chinese developer is behind several other Punggol projects, such as the fully sold RiverParc Residence EC and the recently launched River Isles condominium, now 70 per cent sold.
It will also launch another project, the Waterbay EC, next month.
Verspring Properties was the next highest bidder with an offer of $188 million, or about $311 psf ppr.
The lowest offer for the 99-year-leasehold site was a joint offer of $175.9 million from Opal Star and Binjai Holdings.
The 18,747.8 sq m site is bounded by Punggol Way and Punggol Walk, and next to the Tampines Expressway.
It was launched for sale by the Housing Board on July 23. The tender closed yesterday.
The site could yield about 560 units.
Mr Ong Teck Hui, national director of research, Singapore at Jones Lang LaSalle, said yesterday: "Tender participation is below expectations, especially since the Waterbay site at Punggol Central/Edgefield Plains attracted 10 parties earlier in March."
But he noted that Qingjian's bid is "within expectations" and in line with the $320 psf ppr fetched by the Waterbay site.
"Bidders for this site would have considered Waterbay's time advantage in sales launching as well as further competition from another EC site at Punggol Field Walk, to be put up for tender in October," Mr Ong said, adding that the Punggol sites could yield about 1,400 units in total.
He also noted that the site's proximity to the Tampines Expressway means units affected by traffic noise could be more difficult to sell and will have to be priced less optimistically.
Qingjian Realty told The Straits Times that it will launch the new EC project next March or April. The development will host mainly bigger units - three and four bedders - and will cost $750 psf on average.
AMANDA TAN