ST : Condo-style public housing plot attracts only two bids

Dec 01,2010

Condo-style public housing plot attracts only two bids

By Daryl Chin
A COMPANY linked to construction firm Low Keng Huat yesterday put in the top bid for a public housing site under the Design, Build and Sell Scheme (DBSS) for condo-style public flats.

But there was not much competition: only one other bid came in for the plot at Upper Serangoon Road opposite Serangoon Secondary School, the Housing Board said yesterday. This is the weakest reception for a DBSS tender since 2008.

Kwan Hwee Investment beat the other contender, Sim Lian Land, with a bid of $155.23 million. The company came in second in a tender last month for a DBSS site at Bedok Reservoir Crescent.

The Upper Serangoon plot measures 215,278 sq ft and has a maximum gross floor area of 753,474 sq ft. This works out to be about $206 per square foot per plot ratio (psf ppf).

The site is estimated to yield 630 dwelling units.

Mr Nicholas Mak, research executive director for SLP International Property Consultants, said the recent slew of sites announced for sale by the Government could be one of the reasons for the low number of bids for this plot.

The Government Land Sales programme for the first half of next year will have a total of 30 sites that can generate a record 14,300 residential units - higher than the 13,900 residential units offered for the second half of this year.

For that reason, said Mr Mak, some developers may be conserving their residential resources for upcoming land tenders.

'Another reason is that some developers may also be concerned that the HDB resale market may cool, thereby reducing the demand for DBSS flats,' he said.

He estimates that Kwan Hwee Investment's bid could translate to a break-even cost of about $420 to 450 psf. He added that this would mean a five-room flat in the project could be launched at a price of $500,000 to $535,000.

Meanwhile, Punggol will soon see the launch of its first executive condominium, located in Punggol Central.

Prices at Prive will average between $660 and $690 psf, said NTUC Choice Homes Co-operative in a press release yesterday. It is jointly developing the project with CEL Development.

The four-tower development will comprise 680 apartments, ranging from two- to four-bedroom units.

Apartment sizes start from 775 sq ft for a two-bedder to 1,442 sq ft for a four-bedroom unit.

Viewing and e-application start from Friday, while sales bookings start from Dec 10.

Additional reporting by Cheryl Lim



At another development Prive the first executive condominium in Punggol, prices will average between $660 and $690 psf for the 680 apartments. --PHOTO: NTUC CHOICE HOMES