http://www.businesstimes.com.sg/arch...ives-five-bids
Published June 06, 2012
Pasir Ris Drive 3 residential site receives five bids
Buyers selective as many sites are coming up: analysts
By Mindy Tan
THE latest tender closing for a 99-year leasehold residential site at Pasir Ris Drive 3 saw cautious bidding yesterday, with only five bids received.
Despite the measured response, the top bid of $211 million, or $418.3 per square foot per plot ratio (psf ppr), was within expectations, said Credo Real Estate executive director Ong Teck Hui.
The top bid was put up by Capital Development, whose shareholders include Lee Siaw Ling, Low Khoon Huat, Lakshmanan s/o Seenivasakan, Lee Keng Tiong and Lim Yong Ying Calvin. It narrowly beat the second highest bid of $416.1 psf ppr which was put up by Singland Development.
"Interested parties would have considered competition from the more attractive Elias Road site that was sold in April, which would generate some 350 units," said Mr Ong.
"There's also new supply of 376 units from Sea Esta at Loyang Besar, which would be launched for sale soon," he added.
Indeed, the plethora of opportunities available to developers is making them more selective in tendering for sites, said Mr Ong.
The next three weeks will see weekly tender closings on attractive sites in the form of Buangkok Drive/Sengkang Central (near Buangkok MRT station), Farrer Drive, and Pheng Geck Avenue Parcel B (near Potong Pasir MRT station), he noted.
Joseph Tan, executive director, residential, at CBRE, suggested that developers may be cautious about the site as there is no MRT station nearby. He estimated the project's breakeven cost to be about $800 psf.
"Recent launches in Pasir Ris have been well received. Ripple Bay (679 units) at Pasir Ris Drive 4 has sold nearly 500 units at the average price of $880 psf to-date," said Mr Tan.
"The Palette condominium at Pasir Ris Grove (892 units) which was launched in November 2011 at the average price of $900 psf is about 72 per cent sold," he added.
The subject parcel, which has a site area of about 240,222 sq ft, also received bids from OUE Reef Development ($392.7 psf ppr) and a joint bid by Meadows Bright Development and Hock Lian Seng Holdings ($325.1 psf ppr). The lowest bid came from Frasers Centrepoint Ltd ($310.0 psf ppr).
The residential site is on the northern boundary of Pasir Ris new town, near Pasir Ris Wafer Fab Park. The Pasir Ris Park, PA Pasir Ris Holiday Complex and Pasir Ris Beach are a short walk away.
Amenities are available at West Plaza and Elias Mall. The Pasir Ris MRT station and White Sands shopping mall are a short drive away.