Top offer for Jalan Eunos site is 26.5% more than next highest
DEVELOPERS’ mixed reading of the impact of the new property market cooling rules was apparent at a state tender yesterday.
Far East Organization’s top bid of $414.57 per square foot per plot ratio (psf ppr) for a 99-year leasehold private residential site at Jalan Eunos was 26.5% more than the next highest $327.76 psf ppr from GuocoLand. The lowest offer of the total five bids comes from Sim Lian Land at $244.46 psf ppr.
‘What we’ve seen is a divergence of views (on the impact of the property measures) between the top bidder and the rest. The top bid probably reflects a stable pricing outlook,’ says Credo Real Estate executive director Ong Teck Hui.
Far East Organization’s executive director (development and planning) Chng Kiong Huat said that the group’s proposed scheme is for a five-storey condominium project that will include some townhouses.
‘Buyers will have a choice of one to four-bedroom units. The strata townhouses, which come with private enclosed spaces and roof gardens, will cater to home buyers who desire more space but prefer to live in a gated community with condo facilities. It will be a medium-density housing form with comprehensive lifestyle and recreational choices,’ he added.
Experts highlighted that Far East’s recent success at The Greenwich in the Seletar Hills could also have spurred it to place a more optimistic bid. Since Aug 2, it has sold 216 units (one, two and three bedders) at an average selling price of $1,065 psf.
The breakeven could be around $720-760 psf, said CBRE Research director Leonard Tay. ‘It is probable that a low-rise condo on the site will be able to fetch $850 psf on the average. New mid-rise 99-year leasehold projects such as The Minton at Lorong Ah Soo and Waterfront Gold in the Bedok Reservoir area were recently launched at (average prices of) $850 psf and $990 psf respectively,’ he added.
In July, property consultants had predicted bids of $350-420 psf ppr. ‘If there had been no impact from the Aug 30 measures, I would have expected more bids closer to the $400 psf ppr range,’ says Mr Ong.
Market watchers also point to some bidders opting for a less intensive residential scheme for the 4.1 hectare site, which can be developed into a condominium, or landed or strata landed housing project.
Hoi Hup Realty and its holding company SC Wong Holdings emerged fourth position with a $261.15 psf ppr bid, was looking at a cluster terrace housing development with about 270 units. The remaining bidder at yesterday’s tender was Ho Lee Group, at $303.96 psf ppr.
‘Every developer and property consultant is trying to analyse the impact of the Aug 30 measures on demand. I guess we’ll have to watch the next few tenders for a clearer idea,’ says Mr Ong.