Tampines site: Sole bid rejected

Aug 27, 2008
Tampines site: Sole bid rejected

THE sole bid for a Tampines condominium site overlooking Bedok
Reservoir has been shot down for being too low.

Boon Keng Development's optimistic offer of $84.6 million, or $118
per sq ft (psf), for the site was just not enough, said the Urban
Redevelopment Authority (URA) yesterday.

Consultants were not surprised that the bid was rejected.

They had previously said that anything from $150 to $230 psf would
have been more reasonable as apartments on the 3.2ha site could sell
for up to $700 psf.

According to Knight Frank's director of research and consultancy, Mr
Nicholas Mak: 'If the Government had accepted it, it would be taken
as a signal that it is lowering its reserve price for all other
sites.

'Or (a signal) the Government is of the opinion that the land price
has fallen to the same level as that during the 1998 recession.

'Even then, the last piece of government land sold in 1997 before
site tenders were suspended because of the recession was $171 psf for
a piece of land at Hougang Street 11.

'So it was too optimistic to expect the government to award this
bid.'

The tender for the 99-year residential site at the junction of
Tampines Avenue 1 and 10 was launched on June 17 and closed on Aug
12.