ST : Punggol site draws top bid of $363m

Dec 08,2010

COMPANIES
Punggol site draws top bid of $363m

By Cheryl Lim
A NEW 16-storey condominium is set to come up near Punggol MRT station after a tender for a land site there closed yesterday with seven competitive bids.

Sim Lian Land and Sim Lian Development submitted the top offer for the land parcel at the corner of Punggol Central and Punggol Walk, according to the Urban Redevelopment Authority.

Their bid of $363 million for the 2.7ha site just topped the second-highest offer of $361.7 million. That bid was submitted by China-based Qingdao Construction (Singapore).

Next was Hong Leong Group's Intrepid Investments with a bid of $321 million, while Keppel Land Realty tabled an offer of $318.8 million.

The partnership between FCL Topaz, Far East Civil Engineering and Sekisui House put in a $297 million bid, and Ho Lee Group's Khai Wah Development sent in a $266.7 million bid. Allgreen Properties rounded up the list with a bid of $257.9 million.

Sim Lian's offer works out to $406.30 per sq ft (psf) per plot ratio. The developer said yesterday that it plans to build a 16-storey project comprising 800 units.

The development will offer a mix of units ranging from two- to four-bedroom apartments and penthouse units, Sim Lian said. It is expecting to launch the project by the fourth quarter of next year.

The plot of land has a maximum permissible gross floor area of 888,905 sq ft, and an additional 4,489 sq ft to include the existing conservation building, Matilda House, located within the site.

Matilda House, which is to be conserved and restored as part of the development, is the only remaining historic bungalow in Punggol Town. The building can be restored for use as a clubhouse or for private residential use within the development.

CB Richard Ellis Research executive director Li Hiaw Ho said the historic building, a piece of history from old Punggol, would enhance the lifestyle of the project's future residents.

Mr Li pointed out that the bids in the tender yesterday showed the keen interest that developers had in the site, which could be because of its proximity to an MRT station.

He observed that units at Oasis@Elias , a private condominium in Pasir Ris, were sold at $650 psf to $780 psf in the September to November period.

But nearby NV Residences fetched higher prices for the same period - between $830 psf and $910 psf - because of its proximity to Pasir Ris MRT station and White Sands shopping mall, said Mr Li.

He added that the top bid of $363 million for the Punggol site translates to a break-even cost of about $750 psf, and that the project may be able to fetch around $800 psf when it is ready for launch.