Tuesday, December 29, 2009

Sengkang condo plot up for tender

A LAND parcel at the corner of Sengkang West Avenue and Fernvale Link that is earmarked for condo development has been triggered for sale.

An unnamed developer has applied for the reserve list site to be put up for sale by committing to a minimum bid of $70 million, according to the Housing Board, which is handling the site's disposal.

The 17,000 sq m plot is expected to be released for tender in about two weeks. Under the reserve list system, a site is put out to public tender only when a developer commits to bid at or above the minimum offer price set by the Government.

The 99-year lease parcel is for condominium housing and has a maximum allowable gross floor area of 50,996 sq m. It faces Layar LRT station on Sengkang West Avenue.

It is estimated that the site can accommodate about 465 condo units.

The plot was first added to the reserve list in the first half of last year and has since been rolled over.

CB Richard Ellis executive director Li Hiaw Ho said the top bid could come in at around $300 per sq ft per plot ratio (ppr).

The successful bidder can then expect to sell completed condo units at close to $700 psf.

'Developers are running out of land, so they will bid, but they will be cautious on pricing,' said Mr Li.

DTZ head of South-east Asia Research Chua Chor Hoon, who expects developers to place bids of $250 to $300 psf ppr, said the mass-market site could well attract more than 10 bids.

Source, Straits Times 29 December 2009

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