New cooling measures haven't dampened developers' outlook: Colliers

Jurong West Street 41 offers proof.

Commenting on the high number of tender bids received for the residential site Jurong West Street 41, Colliers International said: "There appears to be no loss of optimism from developers for the first tender closing of a pure residential site after the punitive market cooling measures announced on 11 January 2013. It seems that developers’ outlook has not been dampened."

A total of 12 bids were submitted for the non-landed residential land parcel Jurong West Street 41.

"The top bid by MCL Land of $438.9 million reflects $651 per sq ft per plot ratio, 3.3% above the second highest bidder and 3.5% above the third highest bidder, showing tight competition among the top bids. Should MCL Land be awarded this site, it would cement the developer’s strength in the Jurong Lake District. MCL Land was awarded a site at Boon Lay Way next to Jurong East MRT Station in May 2012 after submitting the winning bid of $369.4 million or $705 per sq ft per plot ratio," added Colliers.

"Nonetheless, some level of opportunistic bidding is observed, where land bids of less than $500 per sq ft per plot ratio were submitted."

Colliers enumerated what made Jurong West Street 41 attractive.

"It is located next to the Canadian International School and will be an attractive housing option for expatriates working in the west. It is right in front of Jurong Lake and would enjoy the new parks, improved promenade, water activities and numerous attractions that will be developed in the medium term. It is also within walking distance of Lakeside MRT Station. The limited supply of new condominium projects in this area has also resulted in the strong interest from developers."

Colliers expects buyer demand to come from professionals working in the industries in the Jurong/Tuas areas as well as upgrader demand from the HDB estates in Jurong East and Jurong West.

"As Jurong East develops further as a regional centre, more working professionals might be tempted with the offerings of a new condominium in this location. At a land price of $651 per sq ft per plot ratio, the estimated break-even cost could range from $1,000-$1,100 per sq ft. When units in this project are ready for launch, the selling price could start from $1,250 per sq ft," added Colliers.