Second Enggor St Site Draws Lower Bids Than Next Door Plot

Source : The Straits Times, Nov 15, 2007

A CONDOMINIUM site in Tanjong Pagar raised eyebrows on Thursday when it drew lower bids than a neighbouring plot, which was sold just two weeks ago.

In a market that has been booming, this is the latest in a series of lukewarm responses to government land sales. Experts say it is further evidence that sentiment in the property market may be fast cooling.

The condo plot, along Enggor Street in Tanjong Pagar, fetched a top bid of $180.8 million when its tender closed on Thursday.

Allgreen Properties put in the high offer, pipping bids by Far East Organization and GuocoLand.

Its price works out to $717 per sq ft per plot ratio (psf ppr) - well below the $852 psf ppr achieved by the plot just next to it.

That site drew only two offers when its tender closed, prompting market watchers to warn that the mood might have changed. Even then, its high bid, from Far East, was some $70 million above Thursday's top offer.

Both land parcels, which are located behind the Icon condo and a stone's throw from the Tanjong Pagar MRT Station, are of similar size.

The situation mirrors that in Marina View. Two months ago, a site there fetched a record $2 billion bid - but its neighbouring plot managed only half that price when its tender closed on Tuesday.

Earlier this month, an office site at Tampines drew only one bid, at a lower price than most consultants had expected.

These tepid sales come after the Government last month unexpectedly removed the deferred payment scheme for homebuyers in what was seen as a bid to curb speculation.

Homebuyers can no longer postpone the bulk of their payments and must now pay progressively.

Read the full report in Friday's edition of The Straits Times.