Punggol residential site sold at $363m

Sim Lian Land and Sim Lian Development closed the tender for Punggol site at $406psf ppr.

DBS said that the 99-year residential land parcel at Punggol which includes the Matilda House Conservation building is a 296,300sf site. It has a GFA of 893,393sf and can house 810 condominiums.

The top bidder, Sim Lian Land and Sim Lian Development, will have to restore Matilda House for use as a clubhouse in the new condominium project.

0.4% higher than the second bidder. The tender attracted 7 bids in total with the second bid at $405psf ppr, a margins 0.4% lower than the winning bid. Other bidders including Keppel Land Realty, a tie-up between Frasers Centrepoint, Far East Organization and Japan's Sekisui House, Hong Leong Group's Intrepid Investments as well as Allgreen put in bids ranging from $288 - $359 psf ppr.

Winning bid is at the lower end of market expectations. We estimate breakeven cost to be around $750 psf and selling price should range from $800–$850psf given its proximity to the MRT station. This would translate to a 10-15% margin.