Lower Than Expected Bids For Jurong Site

Source : The Strait Times, Mar 12, 2008

99-YEAR LANDED PLOT

A LANDED plot in Jurong West that was tipped by one consultant to fetch bids of over $30 million failed to even get to half of that.

Just two offers were placed for the 99-year leasehold Westwood Avenue plot, a stark reflection of thefast-deteriorating sentiment in the property market.

The top bid of just $11.8 million, or $78 per sq ft (psf), of land area came from Boon Keng Development, with Sunway Concrete Products offering $10.33 million, or just $68.1 psf.

Cushman & Wakefield managing director Donald Han, who had tipped that the site could fetch more than $30 million, or $200 to $250 psf, said the offers were 'defensive bids' that would allow the developer to withstand a fallout from the global creditcrunch.

CBRE Research executive director Li Hiaw Ho said the 'relatively conservative bids' for the Jurong site, which is in an established residential area, reflects the market's cautious sentiment.

Assuming the tender is awarded, terrace houses on the 14,098.9 sq m site, within a 10-minute drive of the Boon Lay MRT station, could sell for $900,000 to $1.1 million each, property consultants said.

These levels are just slightly above current prices being transacted in Westwood Park and Westville, said Mr Li. Recent deals of intermediate terrace houses in Westwood Park and Westville ranged between $820,000 and $990,000, he said.