Developers more cautious about condo site bids

As 2012’s first tender for a 99-year leasehold private condo site (at Mount Vernon Road) under the Government Land Sales (GLS) Programme closes today, the cautious bidding seen for Punggol Place, 2011’s last state tender, is expected to continue, according to a Business Times report.

Although the Punggol tender drew 13 bids, major property developers were mostly absent. The top bid of about S$354 psf ppr by Wee Hur Development was 12.8 percent down from the S$406 psf ppr top bid for a nearby site one year earlier.

If the trend continues, the top bid for today’s tender will be similarly lower than the S$620.61 psf ppr paid for a nearby plot in March last year.

A seasoned developer noted that the latest site is not as desirable as the earlier plot since it is in a more mixed environment, surrounded by the SPCA, the Gurkha Cantonment and Bartley Secondary School.

Developers are expected to be more cautious in bidding, considering 2012’s weaker economic outlook, as well as the recent cooling measures.

Source : PropertyGuru – 10 Jan 2012

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