Malaysia’s IOI submits top bid for Clementi condominium site

The government tender for a 99-year leasehold condominium site in Jalan Lempeng near Clementi town centre attracted eight bids at the close yesterday, with the top price of S$408 million coming from Multi Wealth, a wholly-owned unit of Malaysian developer IOI Properties.

Multi Wealth’s bid is 13 per cent and 22 per cent above the second- and third-highest bids, respectively, reflecting the keen interest of the company amid continued cautiousness among other developers, said Ms Chia Siew Chuin, director of research & advisory at property consultancy Colliers International.

Mr Lee Sze Teck, senior manager of research and consultancy at property firm DWG, said the Clementi estate had not had a condominium project launch for many years and the Jalan Lempeng site would likely draw pent-up demand from the residents in the area. He cited the recent DBSS project, Trivelis, as an example.

The 2.4-hectare site at Jalan Lempeng, put up for sale under the Confirmed List of the 2nd half 2011 Government Land Sales (GLS) Programme, can yield about 685 housing units, according to the Housing and Development Board, the sales agent for the tender.

At the bid price, the breakeven is estimated to be S$1,000 psf and the selling price for the project is likely to be around S$1,200 to S$1,300 psf, Mr Lee said.

The tender will be awarded at a later date, the HDB said.

Source : Today – 13 Jan 2012

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