Thursday, 31 May 2012

Residential Market News Extract - 30 May 2012

MCL Land narrowly tops Jurong Gateway tender

 
 
In one of the tightest races at a land tender, MCL Land yesterday edged out its closest rival by just 0.08 per cent or 55 cents per square foot per plot ratio (psf ppr) to emerge as the highest bidder for a plum 99-year leasehold condo site near Jurong East MRT Station.
 
The Urban Redevelopment Authority tender drew 12 bids, attesting to the huge potential developers see in the Jurong Gateway precinct, which is shaping into a major suburban commercial hub with offices, shopping malls and recreational facilities.
 
MCL bid $369.388 million or $705.10 psf ppr. This was $288,000 more than the $369.1 million or $704.55 psf ppr offered by the second highest bidder, EL Development.
 
The top bid is the highest for a 99-year private housing site site offered under the Government Land Sales (GLS) Programme in Outside Central Region.
 
Market watchers noted the top four bids at yesterday's tender were in a tight range. MCL's top bid was 0.08 per cent above EL Development's price, 0.1 per cent above the third highest bid (by a Sing Holdings-Maxdin joint venture) and 1.2 per cent above the fourth highest bid (from a Singapore Land-UOL tie-up).
 
The land parcel can be developed into either a condominium, or flats and/or serviced apartments. MCL chief executive Koh Teck Chuan said that although serviced apartments are allowed, "quite likely we'll do a full condo project".
 
The group's proposed scheme involves a part 25-storey and part 38-storey development with close to 600 residential units. The bulk of the apartments will be one and two-bedroom units, although there will be some three and four-bedders. BT understands MCL Land's breakeven cost could be around $1,100 psf and market watchers would not be surprised to see MCL prepared to sell the project at about $1,300 psf on average.
 
Source: Business Times – 30 May 2012

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