EC site attracts six bids

by Millet Enriquez
05:55 AM Oct 22, 2010

SINGAPORE - An executive condominium (EC) site put up for sale by the Housing and Development Board last month has attracted six bids.

The land parcel located at Pasir Ris Drive 1 / Elias Road received a top bid of $89.89 million from joint bidders ChoiceHomes Investments and CEL Development.

This is slightly higher than the second bid of $89.33 million submitted by EL Development. The lowest bid of $61 million came from Ecco Development.

"This is the second-smallest difference between the top bid and second highest bid in the history of EC land tenders," observed Mr Nicholas Mak, executive director of research and consultancy at SLP International, on the 0.6 per cent gap in the top two bids.

It was back in May 1997 when the top bid of $139 million from a consortium led by Lum Chang Building Construction for an EC site at Boon Lay Way was only 0.5 per cent higher than the second-highest bid, Mr Mak added. That site was developed as Summerdale Executive Condominium.

Meanwhile, Mr Joseph Tan, executive director at CBRE Research, said the bids showed that developers were fairly confident about the site. The top bid of $89.89 million works out to $263 psf/plot ratio and translates to a breakeven cost of $560 to $600 psf.

The 15,142 sq m Pasir Ris site, with a lease term of 99 years, is estimated to yield some 320 units.

There will be a market for the new EC project if it is priced about 20 to 25 per cent lower than NV Residences, which sold around 400 units at the median price of $869 psf since early September, Mr Tan said.

"Demand is likely to come from the first-timers and potential upgraders currently living in Pasir Ris and Tampines new towns," he said.

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