http://www.straitstimes.com/premium/...-bids-20121010
Woodlands EC site attracts five bids
Published on Oct 10, 2012
By Amanda Tan
A TENDER for a site in Woodlands slated for an executive condominium (EC) has drawn five bids from developers, in line with market expectations.
The site is set to yield an estimated 447 homes spread across eight 12-storey blocks.
This is the first site to be launched after the latest round of property cooling measures kicked in last Saturday, but property expert Ong Teck Hui said it did not affect bidding.
Mr Ong, Jones Lang LaSalle's national director of Singapore research, said: "The bids were comparable to those fetched at an adjacent site."
Opal Star, a unit of Frasers Centrepoint, and Binjai Holdings, a Lum Chang unit, jointly submitted the highest bid of about $150 million, or about $302 per sq ft per plot ratio (psf ppr).
Property experts had earlier expected three to seven developers to bid for the 16,505 sq m site at the junction of Woodlands Avenue 6 and Woodlands Drive 16, with bids of between $300 and $350 psf ppr.
The second best offer of $148 million, or $297 psf ppr, was a joint bid from Far East Civil Engineering and China Construction (South Pacific) Development.
Last Friday, the Monetary Authority of Singapore announced that it will cap home loans at 35 years. Those seeking a loan of more than 30 years or whose loan will extend beyond them turning 65 years of age will have lower loan-to-value ratios.
Dennis Wee Group's senior manager of training, research and consultancy, Mr Lee Sze Teck, said: "Demand for ECs should continue to be healthy... Younger first-time buyers are unlikely to be affected by the new measures because they will still qualify for a longer loan period."
Upgraders, although affected by the age limit of 65 years, can appeal to the banks for a higher loan amount as they will have to sell their HDB flats when they take possession of the EC units.
Still, the take-up of ECs might be slower as there are more options in the market, said Mr Lee.
He added that the break-even price should be about $600 to $650 psf while the estimated sale price is between $680 and $730 psf.
The site is a short drive away from Causeway Point shopping mall and major expressways. There are several schools nearby.
A Frasers Centrepoint spokesman noted that the nearest MRT stations are the Admiralty station and the upcoming Woodlands South station.
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