Residential project on the site can sell for around $750- $800 psf: analysts
Published October 8, 2010
By UMA SHANKARI
The bid was slightly below the $350-$400 psf ppr analysts said the site could fetch - based on an eventual average selling price of $800 psf - when it was launched at the end of August.
But the large number of bids surprised some, as recent state land tenders have drawn a more muted response from developers. Analysts attributed the change this time to the Petir Road site's location.
'Most of the sites offered so far this year under the Government Land Sales programme are in the North-east and East regions,' said Ong Teck Hui, Credo Real Estate's executive director of research and consultancy. 'So developers probably see a lot of potential in this area. I think it goes to show that many developers are more selective after the Aug 30 measures but they are not staying away if they see an opportunity.'
CBRE Research director Leonard Tay said: 'The quantum of the bids indicates developers are optimistic about the location of this site, given the sell-out of the adjacent 429-unit Tree House condominium in the second quarter of 2010.'
Credo's Mr Ong said the closeness of the bid prices suggests no one is 'chasing' sites.
Analysts reckon new residential project on the site can sell for around $750-$800 psf - or more if Wing Tai chooses to pitch it as a mid-tier product.
The 99-year-leasehold Tree House was launched at $830 psf on average in April 2010. And units at Mi Casa, a 99-year-leasehold condo at Choa Chu Kang Avenue 3, went for $700-$850 psf between July and September.
Wing Tai's bid was just 2 per cent above the second-highest offer of $173.8 million or $338 psf ppr from Sim Lian Land.
Other bidders included City Developments and Allgreen Properties, and there was joint offer from Far East Organization and Frasers Centrepoint.
The site is about 2.3ha with a maximum permissible gross floor area of about 514,000 sq ft. Around 430 units can be built on it.
Source: http://www.businesstimes.com.sg
