http://www.businesstimes.com.sg/arch...-site-20120905

Published September 05, 2012

Qingjian is top bidder for Punggol site

It offers $189.87m in state tender that drew just 3 bids

By zeinab yusuf saiwalla


CHINESE developer Qingjian Realty has put in the top bid for yet another Punggol site - a 99-year- leasehold executive condominium (EC) at Punggol Way/Punggol Walk.

It offered $189.87 million, or $313.63 per square foot (psf) of potential gross floor area, beating the next highest bidder by less than one per cent.

Verspring Properties had put in $188 million.

The state tender drew just three bids, fewer than what market analysts had expected.

"With only three bidders for the subject site, tender participation is below expectations, especially since the Waterbay site at Punggol Central/Edgefield Plains attracted 10 parties earlier in March," said Ong Teck Hui, national director of research at Jones Lang LaSalle.

Should Qingjian Realty be awarded the site, it will have three developments in Punggol. Earlier this year, the Chinese developer was awarded an EC site at the junction of Punggol Central and Edgefield Plains for the top bid of $136.7 million.

It launched River Isles, a 610-unit condominium, on June 2.

"Qingjian has a significant market share in Punggol," said Lee Sze Teck, Dennis Wee Group senior manager. "This means that they have superior knowledge of the ground conditions including buyers' profile. With many projects in the area, they can also manage their resources better."

The top bid reflects a breakeven cost of between $580 and $630 psf and an estimated selling price of between $700 and $750 psf, Mr Lee added.

Chia Siew Chuin, director of research & advisory at Colliers International, expects a breakeven cost of about $600-650 psf and an average selling price of $750 psf, close to recent transactions at the adjacent Twin Waterfalls EC which sold at a median price of $726 psf from January to August this year.

Analysts BT spoke to yesterday are optimistic about the take-up of units at the site given Punggol's growing appeal to young professionals.

Said Eugene Lim, key executive officer, ERA Realty Network: "The development at this site will appeal to buyers who missed out on the good deal at Twin Waterfalls. There will still be demand for ECs as the price point and the lifestyle it portrays is just what the younger generation is looking for and are able to afford."