Pasir Ris EC site attracts $207m top bid in close contest

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http://www.straitstimes.com/archive/friday/premium/money/story/pasir-ris-ec-site-attracts-207m-top-bid-close-contest-20121123

Pasir Ris EC site attracts $207m top bid in close contest

Published on Nov 23, 2012

By Esther Teo Property Reporter


AN EXECUTIVE condominium (EC) site in Pasir Ris has attracted a top bid of $207 million in a closely fought contest among 10 developers.

Hao Yuan Investment, a China-linked company registered in Singapore in 2010, submitted the top bid of $331.1 per sq ft (psf) per plot ratio (ppr) for the 27,660 sq m site at the junction of Pasir Ris Drive 3 and Pasir Ris Rise.

It beat World Class Investments' bid of $206.7 million - or $330.6 psf ppr - by a whisker.

Other bidders for the land parcel that can yield about 580 units include Qingjian Group, a joint bid by Frasers Centrepoint and Keong Hong Construction, and Mezzo Development, which submitted the lowest bid of $169 million, or $270 psf ppr.

Experts say the level of interest and bids reflect the optimism in the EC market.

Mr Ong Teck Hui, Jones Lang LaSalle Real Estate's national director of research and consultancy, said the 99-year leasehold site enjoyed more interest than most EC sites, which typically find four to six bidders.

"Many buyers like the Pasir Ris location, which is seen as part of the popular East Coast (area)," he added.

"The nearby Watercolours EC site, sold in October last year, also received a strong response, attracting 11 bidders."

ERA Realty key executive officer Eugene Lim noted the variety of shopping, dining and recreational activities near the site, including Downtown East, Pasir Ris Park and the White Sands shopping mall.

He expects a breakeven price of between $600 and $650 psf.

Experts noted that the top bid is 14 per cent higher than the $291 psf ppr fetched by the Watercolours site.

The project has sold 270 of its 416 units at a median price of $719 psf as at the end of October.

Moreover, the top four bidders also submitted bids above $320 psf ppr.

ECs combine elements of private and public housing, and often have premium furnishings and facilities.

But they are subject to Housing Board rules that specify a monthly household income cap of $12,000 for buyers.

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http://www.businesstimes.com.sg/archive/friday/premium/singapore/exec-condo-site-pasir-ris-draws-top-bid-207m-20121123

Published November 23, 2012

Exec condo site at Pasir Ris draws top bid of $207m

China-linked Hao Yuan pips World Class Investments, at $206.7m, by just a whisker

By ong chor hao


AN executive condominium (EC) site at the intersection of Pasir Ris Drive 3 and Pasir Ris Rise was keenly contested, fetching a top bid of $207 million, or $331.10 per square foot per plot ratio (psf ppr).

There were 10 bidders in all for the 99-year leasehold plot, the Housing and Development Board (HDB) said after the tender closed yesterday.

Hao Yuan Investment, controlled by mainland China parties, put in the highest offer. This edged out World Class Investments' bid of $206.7 million, or $330.60 psf ppr.

Ong Teck Hui, Jones Lang LaSalle's national director of research and consultancy, said Hao Yuan's bid was 14 per cent higher than the Watercolours EC site across the road, sold last October.

The top bid exceeded his expectations. Mr Ong attributed the level of bidding activity to the site's choice location near the beach and other amenities like Pasir Ris Park and Downtown East.

"With 10 bidders it is a pretty keen response compared to most EC sites which typically find four to six interested parties," he said.

"Many buyers like the Pasir Ris location which is seen as part of the popular East Coast market," Mr Ong added.

Eugene Lim, key executive officer at ERA Realty, said the latest tender shows that developers continue to be interested in EC sites, and expects the latest plot to have a breakeven price of between $600 and $650 per square foot (psf).

The nearby Watercolours EC has a median price of $719 psf, with 270 of its 416 units sold as of end-October.

Demand from buyers should stay healthy too, Mr Lim said.

"Upgraders chasing condominium lifestyles at more affordable prices will continue to be enticed by ECs," he said.

Mr Lim noted that private developments in the area have also been doing well, citing strong sales at Sea Esta, Ripple Bay and Seastrand.

Other bidders for the site included Frasers Centrepoint's FCL Tampines Court and Keong Hong Construction; Chinese developer Qingjian Realty, as well as a group comprising Evia Real Estate, Ho Lee Group and CNH Investment.

The lowest offer for the land parcel was $169 million, or $270.30 psf ppr, which came from Mezzo Development.