Tuesday, July 24, 2012

Two sites at Dairy Farm, Punggol up for tender


Business Times: Tue, Jul 24

TWO residential sites, expected to yield about 950 units, have been launched by the Urban Redevelopment Authority (URA), and the Housing and Development Board (HDB).

The 99-year leasehold sites, at Dairy Farm Road and Punggol Way/Punggol Walk respectively, are catered to the development of condominiums/flats, and executive condominiums (EC) respectively.

The 188,861.2 square feet (sq ft) site at Dairy Farm Road, has a maximum gross floor area (GFA) of 396,617.4 sq ft, and is expected to yield some 390 homes.

Said Lee Sze Teck, senior manager, research and consultancy, at DWG: "The Dairy Farm Road site is attractive because it is nested within the Dairy Farm neighbourhood and near to the nature reserve. There are amenities nearby such as The Rail Mall and schools. The upcoming downtown line, Hillview MRT station in 2015 will further add to the attractiveness of the site."

He expects strong interest in the site, with up to 10 bidders participating in the tender.

"The estimated top bid could be between $500 to $550 per square feet per plot ratio (psf ppr) while the breakeven cost is between $900 and $950 psf. The estimated selling price could be at least $1,100 to $1,200 psf," he added.

Eugene Lim, key executive officer at ERA Realty Network, said he expects strong bidding of about eight to 10 bidders for the plot, noting that the subject site is superior to the land parcel at Petir Road that was sold in November last year.

"The bidding price is expected to be in the range of $560-$600 psf ppr," he added.

Png Poh Soon, head of research at Knight Frank Singapore opined that interest might be moderate (between four to six bidders), with an expected winning bid of between $550-$590 psf ppr.

"We expect interest for this site to be moderate with up to six bidders, given the existing unsold inventory of about 1,070 units from the nearby developments, in the Hillview and Chestnut Avenue areas," he said.

The second site, which is located next to Twin Waterfalls at Punggol Way/Punggol Walk, has a site area of 201,799.4 sq ft, and maximum GFA of 605,398.3 sq ft. It is expected to yield about 560 EC units.

DWG's Mr Lee expects the site to see up to six bidders, with the estimated top bid between $300 and $350 psf ppr, which is comparable to the successful land price of $320 psf ppr for a site at Punggol Central/Edgefield Plains which was sold to Qingjian in April.

"The breakeven cost could be between $600-$650 psf, and the estimated selling price between $750-$800 psf, comparable to Twin Waterfalls," he added.

EC launches in the area have seen strong sales, with Prive, Riverparc Residences having sold all of their units, and Twin Waterfalls being 98 per cent sold. That being said, with so many project launches in Punggol, demand might have reached a saturation point, and developers might be cautious with their bids, said Mr Lee.

Knight Frank's Mr Png disagreed: "There could be strong interest for this EC site, as this is the last EC site under the H2 2012 GLS programme that is in close proximity to Punggol MRT station, and is easily accessible to Tampines Expressway and Kallang-Paya Lebar Expressway."

"Demand for EC units is expected to remain healthy as this market segment serves the sandwich class of home buyers. Young parents with kids or planning to have kids will be attracted to the future EC development given the number of schools in the vicinity," he added.

Mr Png expects the site to attract between eight to ten bidders, with a winning bid of between $310-$320 psf ppr.

Tender for the residential sites at Dairy Farm Road and Punggol Way/Punggol Walk will close at 12 noon on September 11 and September 4 respectively. 
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
Email: marshe_inc@yahoo.com.sg
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)

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