Land parcel at Punggol Way/Punggol Walk receives 3 bids

The Housing and Development Board (HDB) tender for the land parcel at Punggol Way/Punggol Walk for Executive Condominium Housing Development has attracted three bids at the close on Tuesday.

The top bid came from Qingjian Realty (South Pacific) Group Pte Ltd at S$189.87 million or $3,375.86 per square metre.

This works out to S$314 per square foot per plot ratio.

The top bid was just 1 percent higher than the second bid of S$188 million by Verspring Properties Pte Ltd.

Meanwhile, the lowest bid came from Opal Star Pte Ltd & Binjai Holdings Pte Ltd at $175.88 million.

The 99 -year leasehold site was launched for public tender on 23 Jul 2012.

It has a maximum permissible gross floor area of 56,243.4 square metres.

Miss Chia Siew Chuin, Director of Research & Advisory at Colliers International said the tender for the executive condominium (EC) site at Punggol Way and Punggol Walk was contested by just three contenders, due mainly to the location of the site which is some distant from the MRT station.

“Nonetheless, the three developers remain optimistic about the residential market’s potential and are attracted to the increasingly popular Punggol address” she added.

Miss Chia says the units for this new site could possibly be priced at $750 per square foot (psf) and above,

She also estimates the break-even cost for the developer to be around $600-$650 psf.

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

The result will be announced at a later date.

Source : Channel NewsAsia – 3 Sep 2012

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