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18-03-15, 18:07
http://www.straitstimes.com/archive/wednesday/premium/money/story/jurong-site-tender-draws-338m-top-bid-20150311
Jurong site tender draws $338m top bid
Nine bidders make offers for private housing plot amid softening market
Published on Mar 11, 2015 2:03 AM
By Jacqueline Woo
A STATE tender for a private residential site in Jurong West closed yesterday after attracting healthy demand from developers despite a softening market.
The Urban Redevelopment Authority (URA) said nine bidders made offers for the 99-year leasehold site in Jurong West Street 41.
MCL Land (Vantage) emerged the top bidder, with an offer price of $338.1 million - 21 per cent higher than the average bid from all nine bidders. This works out to be $630.13 per sq ft (psf) of gross floor area.
Chinese firm HY Realty came in second with a $317.9 million bid, followed by the consortium comprising SingHaiyi Group's Phoenix 99, Kay Lim Holdings, and Haiyi Properties, with an offer of about $297 million.
Allgreen Properties made the lowest bid at $222.89 million.
The 191,635 sq ft site, launched for public tender on Dec 5 last year, is expected to yield a maximum permissible ground floor area of 536,580 sq ft when the project is completed.
The URA will announce its decision on the award of the tender after the bids have been evaluated.
The "healthy" number of bidders is testament to demand for attractive sites, said Mr Desmond Sim, CBRE research head for Singapore and South-east Asia.
This is especially so given that the number of residential sites released under the Government Land Sales Programme is being reduced, he added.
JLL national research director Ong Teck Hui noted that the land parcel near Lakeside MRT station has good views of Jurong Lake. "Being the developer of Lakeville, which is adjacent to the subject site, the top bidder (MCL Land) has the advantage of knowing the buying dynamics in that area better than the other bidders."
More than half of the 696 units in Lakeville condo in Jurong Lake Link, due to be completed in 2018, were sold as at January, based on URA developer sales data.
Mr Ong also cited Lakeville's estimated average price of $1,325 psf as an indication of the possible pricing for the project on the Jurong West Street 41 site.
But on the whole, bidders today are still "less optimistic" than they were two years ago, he said.
Of the nine bids in the tender, only the top offer exceeded $600 psf per plot ratio - a far cry from the Lakeville site tender in 2013, which drew five such bids. "This shows a higher degree of caution among the bidders," Mr Ong said.
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Jurong site tender draws $338m top bid
Nine bidders make offers for private housing plot amid softening market
Published on Mar 11, 2015 2:03 AM
By Jacqueline Woo
A STATE tender for a private residential site in Jurong West closed yesterday after attracting healthy demand from developers despite a softening market.
The Urban Redevelopment Authority (URA) said nine bidders made offers for the 99-year leasehold site in Jurong West Street 41.
MCL Land (Vantage) emerged the top bidder, with an offer price of $338.1 million - 21 per cent higher than the average bid from all nine bidders. This works out to be $630.13 per sq ft (psf) of gross floor area.
Chinese firm HY Realty came in second with a $317.9 million bid, followed by the consortium comprising SingHaiyi Group's Phoenix 99, Kay Lim Holdings, and Haiyi Properties, with an offer of about $297 million.
Allgreen Properties made the lowest bid at $222.89 million.
The 191,635 sq ft site, launched for public tender on Dec 5 last year, is expected to yield a maximum permissible ground floor area of 536,580 sq ft when the project is completed.
The URA will announce its decision on the award of the tender after the bids have been evaluated.
The "healthy" number of bidders is testament to demand for attractive sites, said Mr Desmond Sim, CBRE research head for Singapore and South-east Asia.
This is especially so given that the number of residential sites released under the Government Land Sales Programme is being reduced, he added.
JLL national research director Ong Teck Hui noted that the land parcel near Lakeside MRT station has good views of Jurong Lake. "Being the developer of Lakeville, which is adjacent to the subject site, the top bidder (MCL Land) has the advantage of knowing the buying dynamics in that area better than the other bidders."
More than half of the 696 units in Lakeville condo in Jurong Lake Link, due to be completed in 2018, were sold as at January, based on URA developer sales data.
Mr Ong also cited Lakeville's estimated average price of $1,325 psf as an indication of the possible pricing for the project on the Jurong West Street 41 site.
But on the whole, bidders today are still "less optimistic" than they were two years ago, he said.
Of the nine bids in the tender, only the top offer exceeded $600 psf per plot ratio - a far cry from the Lakeville site tender in 2013, which drew five such bids. "This shows a higher degree of caution among the bidders," Mr Ong said.
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