URA Launches Tender For Boon Lay Condo Site

Source : The Straits Times, Oct 18, 2007

A PRIME residential site on Boon Lay Way has been released for sale, just days after news emerged that a nearby condominium unit had fetched a record price of $1,080 per sq ft (psf) last month.

Property pundits expect keen interest in the 2.2ha land parcel next to Lakeside MRT station. The Jurong West HDB estate and Jurong Point shopping mall are nearby.

The Urban Redevelopment Authority (URA) launched the 99-year leasehold site yesterday by public tender, stipulating that it has a maximum permissible gross floor area of 77,003 sq m.

CB Richard Ellis (CBRE) research executive director Li Hiaw Ho said the site is expected to attract significant attention. He noted: ‘Given recent signs of recovery in the suburban market, we expect developers to be keen to bid for this site to beef up their land bank. Demand is likely to be from HDB upgraders and people working in western Singapore.’

Savills Singapore’s director of marketing and business development, Mr Ku Swee Yong, agreed the site would be popular. ‘It’s definitely quite attractive as there are quite a lot of things happening in the west. For example, the Canadian International School is going to move nearby soon.’

URA said this week that a unit in Far East Organization’s The Lakeshore, near the new site, had set a new benchmark of $1,080 psf last month - surprising most analysts as it had been on the market for more than two years.

CBRE’s Mr Li said the Lakeshore site had been purchased by the developer at $197 psf per plot ratio (psf ppr) in August 2002. He noted: ‘The subject site will be able to fetch bids around $300 psf ppr, which translates into a selling price of $700 to $750 psf for the new project on-site.’

Knight Frank’s director of consultancy and research, Mr Nicholas Mak, said about 660 to 700 units could be built on the site. ‘This site would be attractive to major developers such as Far East Organization, Frasers Centrepoint and other listed developers. The number of bids could range from four to eight.’

URA said that a tender period of about eight weeks will be allowed for the site. The tender will close at noon on Dec 12, and selection of the successful tenderer will be based on the tendered land price only.