HDB Offers 4th DBSS Site At Bishan

Source : The Business Times, December 27, 2007

Market watchers expect plot at Street 24 to fetch $200-$240 psf ppr

THE HDB has put on the market a 163,800 sq ft land parcel in Bishan under the Design, Build and Sell Scheme (DBSS) - the fourth such site to be offered under the scheme.























Market watchers estimate that the Bishan Street 24 site could fetch $200-$240 per square foot per plot ratio (psf ppr).

The three previous DBSS sites went for $114 to $234 psf ppr.

'This site is quite attractive,' said Nicholas Mak, director of research and consultancy at Knight Frank. 'We can expect interest from many developers, especially those who also have a construction business.'

Construction companies turned developers will be able to manage the construction costs better, Mr Mak said.

Cost management is crucial, as any developer will not want to price flats coming up on the site higher than resale flats in the vicinity, as that would make the new flats unattractive to buyers.

This site has a maximum gross floor area of 573,300 sq ft, and a maximum building height of 153 metres. It is estimated that the site could take about 390 homes.

The site is attractive as it is an established estate with an MRT station and bus interchange just a few streets away, experts said.

Under the DBSS, the developer who wins the site designs, builds and sells the flats as public housing. The developer will have flexibility in designing and pricing the flats.

Flats sold under the DBSS come with a 99-year lease and will be offered to buyers under similar HDB eligibility conditions like those for flats developed by the HDB itself.

The HDB sold its maiden DBSS site to Sim Lian Group in January 2006 for $114 psf ppr.

The second site, at Boon Keng Road, was sold to Hoi Hup Realty, together with Sunway Concrete Products and Oriental Worldwide Investments Inc, for $234 psf ppr in June.

The third site, in Ang Mo Kio, was awarded to United Engineers earlier this month, after it put in the top bid of $212 psf ppr.

All three DBSS sites saw competitive bidding, with several bidders in each case.