Qingjian is top bidder for Punggol site

Qingjian is top bidder for Punggol site

Chinese developer Qingjian Realty has put in the top bid for yet another Punggol site - a 99-year- leasehold executive condominium (EC) at Punggol Way/Punggol Walk.

It offered $189.87 million, or $313.63 per square foot (psf) of potential gross floor area, beating the next highest bidder by less than one per cent.

The state tender drew just three bids, fewer than what market analysts had expected.

"With only three bidders for the subject site, tender participation is below expectations, especially since the Waterbay site at Punggol Central/Edgefield Plains attracted 10 parties earlier in March.

Should Qingjian Realty be awarded the site, it will have three developments in Punggol. Earlier this year, the Chinese developer was awarded an EC site at the junction of Punggol Central and Edgefield Plains for the top bid of $136.7 million.

It launched River Isles, a 610-unit condominium, on June 2.

The top bid reflects a breakeven cost of between $580 and $630 psf and an estimated selling price of between $700 and $750 psf.

Analysts BT spoke to yesterday are optimistic about the take-up of units at the site given Punggol's growing appeal to young professionals.

Said Eugene Lim, key executive officer, ERA Realty Network: "The development at this site will appeal to buyers who missed out on the good deal at Twin Waterfalls. There will still be demand for ECs as the price point and the lifestyle it portrays is just what the younger generation is looking for and are able to afford."

Source: Business Times – 5 September 2012