Wednesday, June 23, 2010

Tampines DBSS site up for tender

THE Housing and Development Board (HDB) is putting a public housing site in Tampines up for tender today and market watchers expect developers to show a fair bit of interest in it.

The plot at Tampines Avenue 5/Central 8 comes under the Design, Build and Sell Scheme (DBSS), which gives private developers a chance to undertake the design, pricing and sale of flats. DBSS flats come with a 99-year lease and buyers have to meet criteria set by HDB.

The 103-year land parcel measures 227,460 sq ft and has a maximum allowable gross floor area of 682,379 sq ft. It can accommodate an estimated 580 units.

The site is near the Tampines town centre, MRT station and bus interchange. It is also near amenities such as Tampines Mall, a sports hall and a swimming complex. The tender for the plot will close on Aug 3 at 12 noon.

'The site is in a very desirable location with all conveniences within walking distance,' said DTZ South- east Asia research head Chua Chor Hoon.

'It will attract many applicants. Hence the bidding for the land is expected to be competitive.'

Ngee Ann Polytechnic real estate lecturer Nicholas Mak also found the site's location attractive and expects to see four to seven bidders, some of which could be contractors cum developers.

But with more DBSS sites coming onstream later this year, the bids for this site at Tampines 'should rationally not be too bullish', he said.

Mr Mak projects that the land price could range from $160-200 per sq ft (psf) per plot ratio, leading to a breakeven cost of $400- 450 psf.

The site is next to another DBSS project, The Premiere@Tampines, which is fully sold.

When developer Sim Lian Group launched it in 2006, prices for four-room flats ranged from $278,000-410,000, and those for five-room flats were between $308,000- 450,000.

HDB will roll out another two DBSS sites for sale in the second half of the year, at Bedok Reservoir Crescent and Upper Serangoon Road. Both can yield an estimated 1,010 units together.

HDB said it will push out more DBSS sites 'if there is sustained demand'.

Source: Business Times, 23 Jun 2010

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