Far East top bidder for Woodgrove site

Published November 5, 2010

It plans five-storey condo incorporating some townhouses on the site in Woodlands area


By KALPANA RASHIWALA


PROPERTY giant Far East Organization has emerged as the top bidder for a 99-year-leasehold private housing plot at Woodgrove Avenue in the Woodlands area. Its top bid of $105.12 million works out to about $333 per square foot (psf) of potential gross floor area - about 4.2 per cent higher than the next highest bid of about $100.90 million by EL Development.


The state tender drew six bids.

Far East is planning to develop a five-storey condo incorporating some townhouses on the site.

'Tenders for average suburban housing sites seem to have settled into a predictable pattern in terms of bid and price response. The top bids for such plots at the past four state tenders have been consistently in the $330-350 per square foot per plot ratio (psf ppr) range,' observes Credo Real Estate executive director Ong Teck Hui.

'The highest bidders seem to be sharing similar sentiments of a rather flat market going forward,' he added.

CBRE Research executive director Li Hiaw Ho estimates that Far East's bid price would translate to a likely breakeven cost of about $650-700 psf. 'The project will likely be launched above $800 psf,' he added.

He noted that in the subsale market, units in the low-rise Rosewood Suites (under construction) were sold at $650-700 psf in the July-September period. In the secondary market, units in Woodgrove Condominium (also a low-rise project) changed hands at $560-675 psf while those in the Casablanca and Rosewood condo (these are mid-rise developments) were sold at $620-750 psf over the same period.

The site whose tender closed yesterday is a stone's throw from the Singapore Sports School and about 1km from the Singapore American School. It is also nearly 700m from Woodlands MRT Station. Mr Li said the fact that the site managed to draw six bids shows that developers are fairly confident about this site as demand is likely to come from potential HDB upgraders as well as investors who want to tap the expatriate market.

The other four bidders yesterday were TID Residential ($95.4 million), BS Capital's Bishopsgate Development ($86.28 million), Sim Lian ($86 million) and Ecco Development ($73 million or $231.16 psf ppr).

Far East executive director (development and planning) Chng Kiong Huat said: 'We envisage a five-storey condominium development that will incorporate some townhouses, designed to complement the low-rise set-up. Buyers will have a choice of one to four-bedroom units and townhouses which will come with private terraces, roof gardens and dedicated car park lots.

'This is an area that Far East Organization is familiar with, having developed a number of successful themed residential projects there such as Casablanca and La Casa executive condominium as well as a collection of New England-style houses within Woodgrove Estate popular with American expats with children attending the Singapore American School next to it.'

Source: http://www.businesstimes.com.sg