Residential site at Jalan Loyang Besar/Pasir Ris attracts 3 bids

A residential site at the junction of Jalan Loyang Besar and Pasir Ris Drive 4 has attracted only three bids at the close of tender.

The top bid came from MCL Land at S$246.1 million, with the lowest bid coming from a partnership between FCL Topaz, F.E. Lakeside and China Construction Development at S$220.1 million.

Some observers said that there were only a few bids because developers were concerned over potential competition for the completed units.

The likely competition is from projects at nearby sites including those at Pasir Ris Drive 1 and an executive condominium site at Elias Road.

They also note that an impending review to raise the income ceiling for public housing eligibility may also have had a dampening effect on the market for mass market private homes.

The site has an area of 27,054.8 square metres with maximum permissible gross floor area of 56,616 square metres.

The top bid of S$246.1 million translates to S$402 per square foot (psf) per plot ratio and works out to a breakeven cost of around S$750 psf.

CBRE Research executive director Li Hiaw Ho said that “units in this new project will be able to fetch above S$800 psf on the average”.

This was based on caveats lodged between February and April 2011 for nearby units in NV Residences at Pasir Ris Drive 1 which were sold at between S$800 psf and S$890 psf.

Meanwhile, units at another nearby project, Oasis @ Elias, were sold at between S$680 psf and S$830 psf, according to CBRE.

“Demand is likely to come from the potential upgraders currently living in Pasir Ris and Tampines new towns and those working at Changi International Airport, Pasir Ris Wafer Fab Park and Tampines North Wafer Fab Park,” added Mr Li.

Other attractions that could boost interest among potential home buyers for the site include its proximity to Downtown East and NTUC Lifestyle World.

White Sands shopping mall and Pasir Ris MRT station and bus interchange are also a short drive away.

The site is also within walking distance to Pasir Ris Park and the beach.

Analysts said that units on the fifth-storey and above will have a view of the sea as well.

The 99-year lease site was launched for public tender on 29 March 2011.

Source : Channel NewsAsia – 10 May 2011

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