Cautious round of bids for Punggol condo site

Straits Times: Fri, Sep 02
ECONOMIC uncertainty has led to a more cautious round of bids for a condominium site in Punggol. Eight contenders – including heavyweights like Frasers Centrepoint and Hong Leong – vied for the 99-year leasehold plot at Punggol Field Walk. A …

ECONOMIC uncertainty has led to a more cautious round of bids for a condominium site in Punggol.

Eight contenders – including heavyweights like Frasers Centrepoint and Hong Leong – vied for the 99-year leasehold plot at Punggol Field Walk.

A $170 million bid jointly submitted by Capital Development and ZACD Investments topped the list. ZACD’s shareholders include Ms Sim Kain Kain and Mr Yeo Choon Guan, former directors of property consultancy SLP International.

The bid works out to $323 per sq ft per plot ratio (psf ppr) – about 20 per cent lower than the top bid of $363 million, or $406 psf ppr, for a similar plot at Punggol Central and Punggol Walk bought by the Sim Lian Group last December.

Mr Ong Teck Hui, head of research and consultancy at Credo Real Estate, said a crowded property market in Punggol could also be to blame. ‘(There are) some 2,600 units coming on from several new projects. These include Boathouse Residences, A Treasure Trove, The Luxurie… Some are near MRT stations and will provide stiff competition for buyers.’

Analysts said the cautious sentiment was expected given the turmoil in global markets. But they were surprised at the number of developers fighting for what they deemed a ‘mediocre suburban site’.

Many said this could signify developers are still upbeat about the prospects of mass market homes despite recent policy changes that now make public housing a more affordable option for more buyers.

The site has a plot ratio of 3.4 and can be built up to maximum floor area of 524,952 sq ft. An estimated 550 units can be built on this plot of land.

Punggol Plaza retail outlets are nearby but a new mall and other amenities are being built at Punggol Central, two LRT stations away, said Mr Li Hiaw Ho, executive director at CB Richard Ellis.

Homes at nearby executive condo project RiverParc Residence are selling at a median price of $694 psf, leading analysts to speculate that units at this condo will likely be priced above $800 psf.

The winning submission will be announced at a later date.
Source: The Straits Times © Singapore Press Holdings Ltd

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