8 bids received for Sengkang residential site

The tender for a residential site at Sengkang West Way has attracted a total of eight bids.

The highest bid of S$262.1 million was submitted by Secure Development, a unit of UOL Group, said the Housing and Development Board (HDB).

This translates into about S$489 per square foot per plot ratio.

The second highest bid was placed by developer Bayfront Land at S$253.6 million.

HDB said the other bids for the 99-year leasehold site ranged between S$230.4 million and S$111.0 million.

Experts said the number of bids showed that developers are still positive about the residential market and that land parcels with water views are generally popular with developers and homebuyers.

Nicholas Mak, executive director of SLP International Property Consultants, said: “The strength of the site is its proximity to various schools and recreational facilities. The Sengkang Riverside Park and the Punngol park connector are located within walking distance, leading to the Sengkang Sports & Recreation Centre and Punngol Waterway.”

Desmond Sim, CBRE Research’s associate director, said the breakeven cost is estimated to be in the region of about S$900 per square foot (psf).

He added: “Developers will be targeting to launch the project at about S$1,000 psf, given that the site is close to the future Seletar Mall and Sengkang Riverside Park.”

The land parcel spans some 16,600 square metres and has a maximum permissible gross floor area of about 49,800 square metres.

Experts noted that the site is estimated to yield about 530 to 570 housing units.

The site was offered at a state tender, which closed on April 11.

HDB said a decision on the award of the tender would be made after the bids have been evaluated.

Source : Channel NewsAsia – 11 Apr 2013

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