Bishan residential site up for tender

Published January 8, 2011

Bishan residential site up for tender

By EMILYN YAP

THE Housing & Development Board will be launching a 99-year leasehold residential site at Bishan Street 14 for tender in about two weeks' time.

Consultants expect to see as many as eight bidders for the plot, which is located near Bishan MRT station.

The 1.2 ha site on the reserve list, with a maximum gross floor area of 632,764 square feet, can yield an estimated 590 condominium units.

An unnamed developer triggered the sale when it committed to pay at least $189.8 million or $300 per square foot per plot ratio (psf ppr).

The plot is within walking distance of Bishan MRT station and Junction 8 shopping mall. It is also near several education institutions - ITE College Central (Bishan) is next door while Raffles Institution is a few streets away. A few other parcels of state land surround the site.

Cushman & Wakefield senior manager of Asia-Pacific research Ong Kah Seng believes that the top bid might come in at $450-480 psf ppr, which could translate to selling prices of $920-950 psf.

According to caveats lodged with the authorities, units at Bishan 8 nearby went for $852-955 between August and October last year.

There is likely to be moderate demand from developers because of the site's location, Mr Ong said. The winning developer will get a headstart in offering condominiums in that area, and could potentially acquire the surrounding plots when the government includes them in the land sales programme, he added.

SLP International Property Consultants' research executive director Nicholas Mak expects some of the higher bids to reach $460-530 psf ppr.

Although many residential sites on the confirmed list will be rolled out for sale in the first half of this year, this plot at Bishan remains attractive because of its location, he said.

Besides, mass-market homes should continue to enjoy demand even if price growth may be limited this year, he added.


Source: www.businesstimes.com.sg