HDB launches Lakeside site for 580 DBSS flats

Published November 16, 2010

2.1 hectare plot expected to draw bids of $195-215 per sq ft per plot ratio


By EMILYN YAP

THE Housing and Development Board (HDB) is launching a public housing site at Lakeside for sale, which can potentially yield 580 flats

The 2.1 hectare plot comes under HDB's design, build and sell scheme (DBSS).

It is at Yuan Ching Road, near open spaces such as Jurong Lake and the Jurong Country Club golf course, and education institutions such as Jurong Secondary School.

The site is also near the upcoming Jurong Lake District, which the government is developing as a major regional centre.

However, the plot is some distance away from an MRT station.

Both the Lakeside and Boon Lay stations are several bus stops away.

The land parcel has a maximum allowable gross floor area of 684,574 sq ft and carries a lease term of 103 years (including a four-year construction period). The tender will close on Jan 5.

SLP International Property Consultants' research executive director Nicholas Mak believes that the top bid for the site could range from $133.5-147 million, translating to $195-215 per sq ft per plot ratio (psf ppr).

There might be four to six bidders, most of whom would be contractors- cum-developers, he added.

'Compared to some of the earlier DBSS sites sold this year, this site is less attractive as it is not situated near the nearest MRT station,' Mr Mak said.

As a result, he expects bids for the Yuan Ching site to be lower.

He cited as an example a DBSS site at Bedok Reservoir Crescent, near an upcoming MRT station on the Downtown line, which was recently sold for $224 psf ppr.

'The prices of resale flats in Bedok are also generally higher than those in Jurong West,' he said.

According to him, the average price of five-room resale flats in Bedok is $500,000, while that in Jurong West is $490,000.

Under the DBSS, the winning developer enjoys flexibility in designing, pricing and selling the flats.

First-timer households with a monthly income of up to $10,000 are now able to buy new DBSS flats and they can apply for a CPF housing grant of $30,000, but they will not be able to obtain a HDB concessionary loan.



Source: www.businesstimes.com.sg