Wednesday, September 17, 2008

Exec Condo Site Released For Sale In Punggol

Source : The Straits Times, Sep 17, 2008

A NEW executive condominium (EC) site in Punggol has been released for sale by the Housing Board.

A development of about 16 storeys and with about 600 apartments can be built on the plot at the junction of Punggol Field and Punggol Road, HDB said.

The 99-year leasehold site is 242,159 sq ft in size and has a potential gross floor area of 726,477 sq ft.

Property consultants expect lukewarm response from developers despite the site's attractive location near the Punggol MRT Station, Cove LRT Station and the future Punggol Town Centre.

The recent financial catastrophes in the United States might further dampen sentiment in the Singapore housing market, said Mr Nicholas Mak, director of research and consultancy at Knight Frank, who predicts fewer than five bids.

Mr Mak thinks the site can fetch $73 million to $87 million, or $100 to $120 per sq ft (psf) of gross floor area. Finished units could be launched at $500 to $550 psf, based on recent home sales in the area.

This is the fourth EC site the Government has put on the market this year and the only one that is being released under the confirmed list.

This means it is going on sale regardless of buyer interest.

The other three sites made available this year - in Jurong West Street 42, Yishun Avenue 11 and Sengkang East Avenue - were put on the reserve list, so they will be launched for sale only if developers agree to bid a minimum sum.

So far, no interest has been expressed in these three EC sites.

HDB last year tried to make ECs more attractive to potential home buyers by relaxing the rules for applications.

Ninety per cent of the units in a new EC will be set aside for first-timers during the first month of sales. First-time buyers are eligible if they have household incomes of up to $10,000.

The tender for the Punggol site will close on Nov 11.

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