ST : Woodlands site: Far East puts in top bid amid six-way battle

Nov 5, 2010

Woodlands site: Far East puts in top bid amid six-way battle

By Esther Teo

PROPERTY giant Far East Organization has lodged the top offer in a six-way bidding battle for a Woodlands site.

The firm tendered $105.1 million for the 99-year leasehold plot at the junction of Woodlands Avenue 1 and Rosewood Drive. That works out at $333 per sq ft (psf) per plot ratio.

Next up was EL Development on $100.9 million. BS Capital, Sim Lian Land, TID Residential and Ecco Development, with the lowest bid of $73 million, were also in the hunt.

Mr Li Hiaw Ho, executive director of CB Richard Ellis Research, said the six bids showed that developers are fairly confident about the site. Demand is likely to come from potential HDB upgraders and investors who want to tap the expatriate market as the plot is about a 10-minute walk from the Singapore American School.

The 21,000 sq m site has a maximum gross floor area of 29,339 sq m and can be used for strata landed housing or condominium units. About 265 homes could be built, depending on the type of development, said the Housing Board yesterday.

Mr Chng Kiong Huat, Far East's executive director of development and planning, said the firm expects to build a five-storey condominium. '(It) will incorporate some townhouses designed to complement the low-rise set-up. Buyers will have a choice of one- to four-bedroom units and townhouses, with private terraces, roof gardens and dedicated carpark spaces,' he added.

Far East's bid translates to a break-even cost of $650 to $700 psf with the project likely to be launched above $800 psf, Mr Li said. The firm has built a few projects in the area, including private condo Casablanca and the New England-style houses in Woodgrove Estate.

In the sub-sale market, units at the nearby Rosewood Suites, which is still being built, sold at $650 to $700 psf in the third quarter. Units in Woodgrove Condominium transacted at $560 to $675 psf in the secondary market while Casablanca apartments went for $620 to $750 psf.