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May 26, 2011

Healthy interest expected for Punggol exec condo site

By Esther Teo, Property Reporter


ANOTHER executive condo (EC) site in Punggol has been put up for sale, with experts expecting healthy interest with bids of around $320 million.

The 25,164 sq m parcel at the junction of Punggol Way and Punggol Field has a maximum gross floor area of 75,493 sq m that could yield 720 units.

The 99-year leasehold site is near the Punggol LRT and MRT stations, the bus interchange and close to the Tampines and Kallang-Paya Lebar expressways.

Experts say the success of the recent EC launch of Prive in Punggol - it is now 95 per cent sold - has been a good test for the local market.

SLP International research head Nicholas Mak said about four to seven bids can be expected, coming in at $350 to $390 per sq ft (psf) per plot ratio (ppr), or between $284 million and $317 million.

Mr Mak noted that the site is a fairly attractive one, within walking distance of the Punggol town centre.

However, bids are likely to be more measured as there are still five EC projects potentially yielding 2,800 units that have yet to be launched by the HDB, he added.

'The review of the HDB income ceiling is also unlikely to have a large impact on the EC market as it does not mean that everyone will start buying build-to-order flats after the review... There will always be buyers interested in the EC segment,' Mr Mak said.

Mr Png Poh Soon, Knight Frank's head of research and consultancy, expects bids of $310 to $330 psf ppr - or $242 million to $255 million. He expects the eventual selling price of the project to range from $700 to $720 psf.

Ten EC sites have been sold since the start of last year. Those sold early last year attracted up to 11 bids each but the number of bidders has fallen since as property cooling measures were imposed, Mr Png said.

'Despite the decrease in bidders, prices of EC sites close to MRT stations or located in well-established regional hubs held up well,' he added.

'For example, the last EC site awarded in April on Tampines Central 7 closed at $392 psf ppr - the highest EC site for all of 2010 and 2011 so far.'

ECs have condo-like facilities and are an upmarket hybrid of public and private housing.

Separately, 147 of the 315 units Belysa in Pasir Ris were snapped by 5pm yesterday, the first day of sales.