Muted bidding expected for Bishan, Sembawang sites The government yesterday released for sale two residential sites - one at Lorong Puntong off Sin Ming Avenue and another executive condo (EC) site at Sembawang Road-Canberra Link. Both are in the confirmed list, under which sites are launched according to schedule, regardless of demand. The Lorong Puntong site has a land area of 10,503 square metres and can yield a maximum gross floor area (GFA) of 22,056 sq m - about 280 homes. Consultants are divided on how the plot will do in the tender. The winning range is predicted at about S$620-680 psf per plot ratio (ppr). The limited upcoming supply of private residential-zoned land in the Sin Ming, Bright Hill and Bishan area, the Lorong Puntong site can be considered attractive. The fairly small site will likely attract small and medium-sized developers. However, a Bright Hill Drive site which sold for S$720 psf ppr in 2012 and has been developed into the Thomson Three condo. Given its 18 per cent winning margin (which hints at over-bidding), and taking into account loan caps and developers having had to trim prices for Bishan town centre projects such as Sky Vue and Sky Habitat, the Lorong Puntong site may receive more realistic interest. The Sembawang EC site is a large 28,746 sq m plot and has a maximum GFA of 60,366 sq m which can yield about 605 homes. Consultants expect lukewarm bidding to culminate in three to seven bids, with a winning offer of about S$300-330 psf ppr. Two nearby EC sites sold earlier - at Canberra Drive and Sembawang Avenue - make up a large supply pipeline that will challenge this latest site. Sales at the Skypark Residences EC at Sembawang Crescent have also been slow, with only three-fifths of its units sold since its launch in October. There is some sense of over-saturation of new private homes and ECs in the immediate vicinity within the far-flung Sembawang. The balance unsold units will be carried forward to 2015, so developers tendering for sites which will be launched from 2015 will factor in these risks of added sales competition. The tender for the Lorong Puntong site closes on Oct 8 while that for the Sembawang EC site ends on Sept 30. Source: Business Times – 19 August 2014
Posted on: Tue, 19 Aug 2014 10:28:58 +0000
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