Frasers Centrepoint, Far East Organization and Japan's Sekisui House, which collectively put in the highest bid for a mixed use site in Punggol, plan to build a waterfront development with around 680 homes and a 365,000 sq ft retail mall if the site is awarded to them.
The consortium trumped 6 other bidders with its bullish $1.02 billion offer for the commercial and residential site at Punggol Town Centre at the close of the state tender yesterday.
The bid works out to $753 psf ppr – much higher than the $400-$450 analysts estimated the 99-year leasehold site could fetch when it was launched in November. The consortium's offer was some 20% higher than the second highest bid of $849.8 million, or $627 psf ppr, offered by a consortium led by Qingdao Construction. The bid demonstrates the 3 developers' confidence in the Singapore property market, said Frasers Centrepoint chief executive Lim Ee Seng.
It is located next to Punggol MRT station and will be the first mixed development to be built by private developers in the estate. The upcoming mall is also likely to be developed into the first shopping centre in Punggol, which means that the winning developers will have a first-mover advantage, noted Nicholas Mak, head of research at SLP International.
In addition, Punggol has an expanding young middle class population. Some of the HDB flats are more than 5 years old. This means that there will be healthy demand from upgraders for private homes in the housing estate, Mr Mak added.
The pricing for residential and retail rents at the upcoming project can be expected to be 'optimistic', given the site's prime location next to the MRT station and its proximity to a bus interchange, schools and other amenities, said Mr Ong.
Source : The Business Times, 16 Feb 2011
Nearby Project : H2O Residences
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