The public tender for a 99-year leasehold condo site at Jalan Loyang Besar / Pasir Ris Drive 4 has attracted only three bids, with MCL Land Ltd offered the highest bid of S$246.1 million, approximately $402 psf ppr.
Li Hiaw Ho, Executive Director at CB Richard Ellis (CBRE), said that the government’s upcoming review of the monthly household income ceiling for buyers of HDB flats may affect the demand for mass-market private homes.
The tender result also “reflects developers’ awareness of potential competition from adjacent sites, at Pasir Ris Drive 1 and an executive condominium site at Elias Road,” he said.
Mr. Li noted that MCL Land could break even at around S$750 psf, adding that “units in this new project will be able to fetch above S$800 psf on the average.”
The land parcel has a total area of 27,054.8 sq m and a maximum permissible gross floor area (GFA) of 56,816 sq m. It is zoned for residential development and could yield up to 580 units.
“Demand is likely to come from the potential upgraders currently living in Pasir Ris and Tampines new towns and those working at Changi International Airport, Pasir Ris Wafer Fab Park and Tampines North Wafer Fab Park,” said Mr. Li.
The second highest bid came from Allgreen Properties Ltd at S$233.99 million, followed by a joint bid between FCL Topaz Ltd, F.E. Lakeside Ltd and China Construction (South Pacific) Development Co Ltd, which offered S$220.2 million, or around S$360 psf ppr.
Ong Teck Hui, Executive Director at Credo Real Estate, described the interest level for the site tender as “rather subdued” but noted that there is no sign of any major change in the market reading. Rather, the result for the tender was partly a case of “an average site commanding lower interest”.
The URA said it will evaluate the tender result and a decision on the award will be made at a later date.
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