Wednesday, March 31, 2010

Tender for Yishun DBSS site launched

THE Housing and Development Board (HDB) has launched a land parcel in Yishun for sale under its design, build and sell scheme (DBSS). Around 700 flats can be built on the site located at the junction of Yishun Avenue 11 and Yishun Central.

Analysts estimate that the top bid could be in the region of $132-166 million, which translates to around $160-200 per square foot (psf) per plot ratio. They added that the site should draw healthy interest from developers. ‘Developers, especially those with a construction arm, will be keen on the site,’ said Ngee Ann Polytechnic real estate lecturer Nicholas Mak. ‘If the flats there are priced sensibly, they will be well taken up.’

The site will also be popular because it is in a mature housing estate, said PropNex chief executive Mohamed Ismail. He expects flats on the site to sell for around $400 psf eventually.

Others have pricier estimates. Eugene Lim, associate director for ERA Asia-Pacific, said that a three- bedroom flat of around 1,100 sq ft on the site could sell for around $600,000, which works out to $545 psf.

HDB also said that it will continue to monitor demand for public housing and release more sites for development under the design, build and sell scheme in coming months if there is demand.

Under the scheme, the developer who wins a site will enjoy some flexibility in designing, pricing and selling the flats. But flats will still be sold only to buyers who meet HDB eligibility conditions.

HDB has offered a total of 3,653 new flats under its build-to-order scheme in Q1 2010. Potential flat buyers can also look forward to another 1,200 flats in Punggol in April.

These launches are part of HDB’s plans to offer at least 12,000 new build-to-order flats this year – or even more if there is demand. The new projects will be spread across various locations such as Punggol, Sengkang, Yishun and Jurong West. The tender for the site in Yishun will close at noon on May 18.

Source: Business Times, 31 Mar 2010

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