Tender for Punggol EC site receives only three bids

A tender for a land site to build a Executive Condominium (EC) at the junction of Punggol Way and Punggol Field has received only three bids.

This is according to provisional results released by the Housing and Development Board.

The highest bid was at S$219.47 million, from FCL Tampines Court and Keong Hong Construction.

This works out to S$270 per square foot per plot ratio for the site.

According to Colliers International, this is also the lowest unit land price achieved for an EC site thus far in 2011.

“This indicates further moderation of developers’ expectations amid current market uncertainties pending clearer policy directions from the government, “said Chia Siew Chuin , Director for Research and Advisory at Colliers International.

She added: “Based on a land cost of S$270 per square foot per plot ratio and average selling prices of around S$690 per square foot for newer EC developments in the locality, new units at the site are likely to breakeven at about S$540 per square foot. This cautious bidding and the resulting lower land cost would provide the developer a buffer should the market soften going forward.”

The lowest bid was from EL Development at S$177 million, behind CEL Development at S$218 million.

The 270,865 square feet site can potentially yield about 720 units.

The winner of the tender will be announced at a later date.

Source : Channel NewsAsia – 7 Jul 2011

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