Tender for Elias Rd/Pasir Ris Drive 3 site attracts 9 bids

The Housing and Development Board (HDB) tender for a land parcel at Elias Road/Pasir Ris Drive 3 has attracted nine bids at the close.

Analysts said the number of bids for the site – which has been designated for development of strata landed housing, condominium or flats – show that developers are still keen on the residential market.

The top bid of S$165.9 million came from Elitist Development Pte Ltd.

This works out to S$472 per square foot per plot ratio.

The top bid is 19 per cent higher than the second bid of S$139 million by OUE Reef Development Pte. Ltd.

Meanwhile, the lowest bid came from Santarli Corporation Pte. Ltd at S$108.9 million.

The 99-year leasehold site was launched for public tender on 15 February 2012.

It has a maximum permissible gross floor area of 32,650.8 square metres and is located on the northern boundary of Pasir Ris new town.

“It is likely that the developer will choose to develop a condominium project although there is the option of building strata landed homes onsite. Based on this price, the new condominium may be priced about S$900 psf,” said Li Hiaw Ho, executive director at CBRE.

Meanwhile, Nicholas Mak, the head of the Consultancy & Research division at SLP International Consultants, said the site may be developed into low-rise housing with a breakeven price of around S$800 and S$830 per square foot.

The site is surrounded by the landed homes of Riverina estate and Pasir Ris Heights, with Elias Mall and Pasir Ris Community Centre just across the road from the site.

The Pasir Ris MRT station, White Sands shopping mall and Downtown East are also a short drive away.

Mr Li also added that recent new launches in Pasir Ris have been well received.

“Ripple Bay (679 units) at Pasir Ris Drive 4 sold over 400 units at the average price of S$870 psf after two weekends. The Palette condominium at Pasir Ris Grove (892 units), which was launched in November 2011 at the average price of S$900 psf, is over 60 per cent sold,” said Mr Li.

He believes the Pasir Ris and Tampines new towns will provide a ready pool of HDB upgraders who will be interested in such mass-market projects.

HDB said a decision on the award of the tender will be made after the bids have been evaluated. This will be announced at a later date.

Source : Channel NewsAsia – 11 Apr 2012

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