Tuesday, May 25, 2010

Maxdin, Lee Carriers put in top bid for Sengkang East land parcel

Developers Maxdin and Lee Carriers have put in the top bid of S$176 million for a land parcel at Sengkang East Avenue and Buangkok Drive.

The next highest bid of $160.12 million came from Hoi Hup Realty and Sunway Developments.

Frasers Centrepoint’s bid of $158.18 million came in third, while Sim Lian Land handed in the lowest bid of $115.84 million.

All in, the Housing and Development Board (HDB) received 7 bids when the tender closed.

The 17,000-square metre land parcel can be developed into executive condominium housing.

The parcel is part of the Reserve List of the Government Land Sales (GLS) programme for the first half of 2010.

It was triggered for sale after a developer committed a minimum bid of $103.8 million.

Mr Li Hiaw Ho, executive director of CBRE Research said the top bid was slightly above expectations.

“This could be due to the fact that there are no more EC (executive condominium) sites in Sengkang being offered on the confirmed and reserve lists of the GLS programme for second half of 2010,” he said.

He said the $176 million bid works out to $321 per square foot per plot ratio or about 1.9 per cent higher than the EC site at Compassvale Bow.

The breakeven would be in the range of $600 psf to $620 psf, Mr Li said, adding that units in the new EC project could fetch above $650 psf.

The 99-year lease site was launched for tender by HDB last April 14.

HDB said it will evaluate the provisional tender results and award the tender in the next two weeks.

Source: Channel News Asia, 25 May 2010

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