Published October 22, 2010
Pasir Ris EC site draws top bid of $262.62 psf
By KALPANA RASHIWALA
A 60-40 joint venture between NTUC Choice Homes Co-operative and Chip Eng Seng Corporation has emerged as the highest bidder for an executive condo (EC) site in Pasir Ris.
Choice Homes and Chip Eng Seng said yesterday that they intend to build an 18-storey, 320-unit project with full condo facilities. 'This will be the first EC to be offered in Pasir Ris since 2002,' they said.
Breakeven cost for the project will be below $600 per square foot, they added.
Credo Real Estate executive director Ong Teck Hui estimates that an EC development on the site could command an average selling price of about $650-700 psf if it were to be launched today.
ECs are a hybrid of public and private housing.
The plot, bounded by Pasir Ris Drive 1, Elias Road and Sungei Api Api, is flanked by Ris Grandeur on one side and Livia and NV Residences on the other. All three are private condos. NV Residences, which has 99-year leasehold tenure, was launched last month.
CB Richard Ellis executive director Joseph Tan said: 'Given that 347 units were sold at NV Residences last month at a median price of $859 psf, there will be a market for this new EC project if it is priced at about 20-25 per cent below this level, given the restrictions on EC ownership, which are similar to HDB ownership rules.'
Other bidders at yesterday's tender included a joint venture between Frasers Centrepoint unit Opal Star and Lum Chang Building Contractors ($251.49 psf ppr); and City Developments subsidiary Sunmaster Holdings ($240.71).
A partnership involving Hoi Hup Realty, Sunway Developments and SC Wong Holdings bid $230.43 psf ppr, while Ecco Development placed the lowest bid of $178.22 psf ppr. Credo's Mr Ong said: 'The tender response for the Pasir Ris site was a shade better than that for a Punggol site last month in terms of price as well as bidder interest. This is probably due to Pasir Ris being a more mature and developed location. Also this is a less crowded sub-market since most of this year's EC sites have been concentrated in the north-east region, especially Sengkang/Punggol.'
The bid price and interest level indicates the bidders' confidence that there will be sustained buyer interest in ECs, he added.
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