Pasir Ris Drive 3 residential site receives five bids

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http://www.businesstimes.com.sg/arch...ives-five-bids

Published June 06, 2012

Pasir Ris Drive 3 residential site receives five bids

Buyers selective as many sites are coming up: analysts

By Mindy Tan


THE latest tender closing for a 99-year leasehold residential site at Pasir Ris Drive 3 saw cautious bidding yesterday, with only five bids received.

Despite the measured response, the top bid of $211 million, or $418.3 per square foot per plot ratio (psf ppr), was within expectations, said Credo Real Estate executive director Ong Teck Hui.

The top bid was put up by Capital Development, whose shareholders include Lee Siaw Ling, Low Khoon Huat, Lakshmanan s/o Seenivasakan, Lee Keng Tiong and Lim Yong Ying Calvin. It narrowly beat the second highest bid of $416.1 psf ppr which was put up by Singland Development.

"Interested parties would have considered competition from the more attractive Elias Road site that was sold in April, which would generate some 350 units," said Mr Ong.

"There's also new supply of 376 units from Sea Esta at Loyang Besar, which would be launched for sale soon," he added.

Indeed, the plethora of opportunities available to developers is making them more selective in tendering for sites, said Mr Ong.

The next three weeks will see weekly tender closings on attractive sites in the form of Buangkok Drive/Sengkang Central (near Buangkok MRT station), Farrer Drive, and Pheng Geck Avenue Parcel B (near Potong Pasir MRT station), he noted.

Joseph Tan, executive director, residential, at CBRE, suggested that developers may be cautious about the site as there is no MRT station nearby. He estimated the project's breakeven cost to be about $800 psf.

"Recent launches in Pasir Ris have been well received. Ripple Bay (679 units) at Pasir Ris Drive 4 has sold nearly 500 units at the average price of $880 psf to-date," said Mr Tan.

"The Palette condominium at Pasir Ris Grove (892 units) which was launched in November 2011 at the average price of $900 psf is about 72 per cent sold," he added.

The subject parcel, which has a site area of about 240,222 sq ft, also received bids from OUE Reef Development ($392.7 psf ppr) and a joint bid by Meadows Bright Development and Hock Lian Seng Holdings ($325.1 psf ppr). The lowest bid came from Frasers Centrepoint Ltd ($310.0 psf ppr).

The residential site is on the northern boundary of Pasir Ris new town, near Pasir Ris Wafer Fab Park. The Pasir Ris Park, PA Pasir Ris Holiday Complex and Pasir Ris Beach are a short walk away.

Amenities are available at West Plaza and Elias Mall. The Pasir Ris MRT station and White Sands shopping mall are a short drive away.

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http://www.straitstimes.com/Money/St...ry_807545.html

Five bids for Pasir Ris residential site

Published on Jun 6, 2012

By Yunita Ong


A RESIDENTIAL site in Pasir Ris has met with a cautious response from developers, with only five bids lodged by the time the tender closed yesterday.

The top bid, from Capital Development, was $211 million or $418 per sq ft per plot ratio (psf ppr).

Capital Development is developing FLO Residence not far away in Punggol in a joint venture. The project was launched last month.

In second spot was SingLand Development with a bid of $209.9 million or $416 psf ppr.

The lowest came from Frasers Centrepoint which put in a bid of $156.4 million, or $310 psf ppr.

The 46,867 sq m site in Pasir Ris Drive 3, on the northern boundary of Pasir Ris new town, is zoned for condominiums or flats, or a combination of flats and strata landed houses if prior approval has been obtained. A maximum of 670 flat units is allowed.

While the top bid was within expectations, the 'tender response was moderate', said executive director at Credo Real Estate Ong Teck Hui.

Competition was a big reason for the lukewarm response from developers, he added.

'Interested parties would have considered competition from the more attractive Elias Road site that was sold in April, which would generate some 350 units.

'There's also new supply of 376 units from Sea Esta at Loyang Besar, which would be launched for sale soon,' Mr Ong said.

Elitist Development put in the top bid of $165.9 million, or $472 psf ppr, for the site between Elias Road and Pasir Ris Drive 3.

Another reason for the muted response to the latest site could be the raft of tender closings over the next three weeks in Buangkok Drive/Sengkang Central, Farrer Drive and Pheng Geck Avenue Parcel B, said Mr Ong.

'With this variety of opportunities, developers are likely to be more selective in tendering for sites.'

CBRE's executive director of residential services Joseph Tan said that developers may have been held back by potential competition from other sites in Pasir Ris and Tampines.

One could also attribute it to the distance between the site and Pasir Ris MRT station 'which is a short drive away', said Mr Tan.

'The five bids submitted and the quantum of the bids show that developers are cautious about the site because there is no MRT station nearby.' Recent launches in Pasir Ris have been well received, Mr Tan noted.

The 679-unit Ripple Bay in Pasir Ris Drive 4 has sold nearly 500 units at the average price of $880 psf to-date. The 892-unit Palette condominium in Pasir Ris Grove was launched in November last year at the average price of $900 psf and is about 72 per cent sold.

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