Yes, developers are interested but are more cautious

The residential site at Jalan Loyang Besar / Pasir Ris Rise attracted 13 bids, but the highest was more than 10% lower than a neighbouring site.

The 17,274.2 sqm land parcel received 13 bids with the highest at $140.96 million or $361 per sq ft per plot ratio. It came from the group of Hoi Hup Realty Pte Ltd, Sunway Developments Pte Ltd and Oriental Worldwide Investments.

The site, launched for public tender on 25 August 2011 and was offered for sale on a 99-year lease, can potentially yield about 355 housing units.

Li Hiaw Ho, Executive Director, CBRE Research, commented, “This strong response is probably a reflection of developers’ awareness that the supply of residential land in Pasir Ris would be more limited compared to areas like Punggol and Sengkang. In addition, it also shows that developers are confident of residential demand going forward, upgrader demand in particular.”

Meanwhile Ms Chia Siew Chuin, Director of Research & Advisory at Colliers International, said, “The tender for the private non-landed residential site at Jalan Loyang Besar / Pasir Ris Rise attracted a total of 13 contenders, an interest level not seen since the 15 party-bid for the non-landed residential site at Upper Serangoon Road/Pheng Geck Avenue (Parcel A) in August 2011, amid the current uncertainties on the global economic front.”

They noted, however, that the highest bid is some 10.3% lower than the $402 psf ppr achieved for an adjacent site at Jalan Loyang Besar / Pasir Drive 4 sold in May 2011. This, according to Ms Chia, indicates that developers are adopting a more cautious stance.