Tampines land site attracts 16 bids

The tender by the Housing and Development Board (HDB) for the land site at Tampines Road has attracted a whopping total of 16 bids from property developers.

This is higher than the 14 bids attracted from developers for the land site at Boon Lay Way and Lakeside Drive when its tender closed on Tuesday.

Fragrance Properties submitted the highest bid of $16.25 million for the 99-year lease land parcel which is to be developed for landed or apartment housing. This translates to about $405 per square foot per plot ratio (psf ppr) and is about $10 million more than the minimum price of $6.5 million for the land.The next highest bid came from Whye Wah Group with a bid of $15.5 million.

The site, which has a maximum gross floor area of 3,727 square metres, was offered for sale last month under the reserve list of the first half 2010 government land sales programme. HDB will announce the final tender results within the next two weeks.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the highest bid would translate to a break-even price of $720 psf to $750 psf. He also said the developer is likely to develop small apartments to maximise the psf selling price.

Mr Mak noted the hot contests for the Tampines Road and the Boon Lay Way site indicate that developers are still hungry for development sites and are bullish on the local property market.

In a separate announcement, Keppel Land, which was awarded the tender for the Boon Lay Way and Lakeside Drive site by the Urban Redevelopment Authority yesterday, said it plans to develop about 550 condominium units on the site.

The project is expected to be launched by the end of this year and completed by 2013.

Source : Today – 7 May 2010

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