12 bids for Jurong West Street 41 residential site

A residential land site at Jurong West Street 41 attracted 12 bids at the close of tender by the Urban Redevelopment Authority (URA) on Tuesday.

Property consultants said the high number of bids reflects the keen interest from developers.

It also shows that developers’ outlook on the property market has not been dampened by the recent property cooling measure announced earlier this month.

Joseph Tan, executive director of residential at CBRE, said: “This shows that developers are still on the hunt for sites with good location attributes and demonstrates their confidence that the market will respond positively to the project.”

MCL Land (Prestige) – a subsidiary of Jardine Matheson Group under Hongkong Land Holdings – was the highest bidder for the land parcel.

It submitted a bid of S$438.9 million, or S$651 per square foot per plot ratio (psf ppr), for the 99-year-leasehold site.

This was 3 per cent above the second highest bid of S$424.9 million made by Secure Development.

Director for research & advisory at Colliers International, Chia Siew Chuin, said: “Should MCL Land be awarded this site, it would cement the developer’s strength in the Jurong Lake District.

“MCL Land was awarded a site at Boon Lay Way next to Jurong East MRT Station in May 2012 after submitting the winning bid of S$369.4 million or S$705 psf ppr.”

Meanwhile, other bidders include a joint bid by Frasers Centrepoint, Far East Organization and Sekisui House.

The lowest bid came from Mezzo Development, with a bid price of S$243.8 million.

The Jurong West Street 41 site is located next to the Canadian International School and is within walking distance to Lakeside MRT station.

Ms Chia noted: “Buyer demand should come from professionals working in the industries in the Jurong/Tuas areas as well as upgrader demand from the HDB estates in Jurong East and Jurong West.

“As Jurong East develops further as a regional centre, more working professionals might be tempted with the offerings of a new condominium in this location.

“At a land price of S$651 psf ppr, the estimated break-even cost could range from S$1,000 – S$1,100 psf. When units in this project are ready for launch, the selling price could start from S$1,250 psf.”

She added: “The limited supply of new condominium projects in this area has also resulted in the strong interest from developers.”

The site has an estimated gross floor area of 62,601 square metres and was launched for public tender on November 15 last year.

URA said it would decide on the winning bidder at a later date.

Source : Channel NewsAsia – 29 Jan 2013

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