Jurong public housing site attracts top bid of $131.6m

Published January 6, 2011

Jurong public housing site attracts top bid of $131.6m

By FELDA CHAY


A TIE-UP between Hoi Hup Realty, Sunway Developments and SC Wong Holdings has put in the highest bid of $131.6 million for a public housing site on Yuan Ching Road in Jurong.

This is 5 per cent above the second highest tender from Yuan Ching Development. Six bids were put up for the site, which can potentially yield 580 flats. The lowest bid was $68.5 million.

The top bid translates to a per square foot per plot ratio (psf ppr) price of $192 for the site under the Design, Build and Sell Scheme (DBSS), which is 'within expectations', said Ong Kah Seng, senior manager of Asia-Pacific research at Cushman & Wakefield.

This is, however, 'considerably lower than that of recent DBSS sites awarded, which are at least $200 psf', said Mr Ong. This could be due to the less central location of the plot of land, as compared with previous DBSS sites located in Upper Serangoon and the Bedok Reservoir area.

Overall moderation in home- buying sentiment in the public residential sector could also have played a part, Mr Ong added.

Credo Real Estate executive director Ong Teck Hui said the six bids put up for the site showed there was 'fair interest' in the tender. 'Going forward, bidders would be mindful of the supply of DBSS sites coming into the market. Response in terms of bid prices and participation level will depend on the locations and attributes of the sites,' he said.

The 2.1 hectare Yuan Ching plot is near Jurong Lake and the Jurong Country Club golf course, as well as education institutions such as Jurong Secondary School. Both Lakeside and Boon Lay MRT stations are several bus stops away.

The land parcel has a maximum allowable gross floor area of 684,574 sq ft and carries a lease term of 103 years (including a four-year construction period).

The Housing and Development Board (HDB) said it will evaluate the tender bids and announce the final results within the next two weeks

Source: www.businesstimes.com.sg