Friday, August 26, 2011

2 executive condo sites up for tender

TWO executive condominium (EC) sites have been put up for tender, the first since the buyers' income ceiling was raised.
The first is on a 199,951 sq ft site in Pasir Ris Drive 3. It has a plot ratio of 2.1, so it could yield 390 units.

The land is connected to Pasir Ris MRT station and near Tampines Expressway. Meridian Junior College and Casuarina Primary School are in the area.

Analysts expect up to seven bids with offers of up to $125 million, which would translate to about $300 per sq ft per plot ratio (psf ppr).

The tender closes on Oct 11.

The other sale is for a 292,283 sq ft site at the corner of Yishun Avenue 7 and Canberra Drive that could house up to 725 homes.

Sitting on the northern fringe of Yishun New Town, the site is near Yishun MRT station and bus interchange while Chong Pang Community Club and Yishun Stadium are in the area.

Property experts tip a top bid of between $183 million and $197 million, or between $250 psf ppr and $270 psf ppr. The tender closes on Oct 25.

Mr Png Poh Soon, head of research and consultancy at Knight Frank, believes this plot will attract less interest than the Pasir Ris plot, which is nearer to the sea and Pasir Ris Park.

New rules mean those earning up to $12,000 can now buy an EC unit. Previously, those earning up to $10,000 were allowed to buy such homes.

Industry insiders expect that while ECs will garner more interest due to the increased buyer pool, developers will not be rushing in for the sites, which have leaseholds of 99 years inclusive of a four-year construction period.

But Mr Png believes the EC sector remains positive, helped by the greater flexibility developers now have in pricing such projects.

'At the current low interest rate... EC units can be priced up to $1.6 million, up from $1.3 million previously,' he said.

But ultimately, how much buyers are prepared to pay will determine how great the demand for ECs will be, said Mr Ong Kah Seng, Cushman and Wakefield's senior manager of Asia-Pacific research.

'While more developers will be open to EC developments, the bid prices submitted are... unlikely to be excessively optimistic. This is in line with a general cautious economic and property environment,' he said.

The Urban Redevelopment Authority has also launched two other residential sites which could yield a total of 770 units.

One in Jalan Loyang Besar is sized at 185,938 sq ft and expected to attract between five and eight bids.

It could accommodate around 355 units and attract offers of up to $180 million. The tender closes on Oct 4.

The other is a 322,368 sq ft site in Flora Drive and could yield 415 homes. Top bids are tipped at about $158 million. The tender closes on Oct 19.

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