Bidders go flat out for 2nd design-and-build project
It was a novel concept that turned out to be a runaway success — about 6,000 people applied last year for the 616 flats at the Premiere in Tampines, which was under the Housing Board’s (HDB’s) first Design Build and Sell Scheme (DBSS).
No wonder then that six private developers are eyeing the second such site offered by the HDB, putting in bids of up to $170 million by the close of tender yesterday.
This works out to $2,516 per square metre for the Boon Keng Road site, more than double the highest bid of $1,224 per square metre received for the Tampines site.
Sim Lian Land, who was awarded the first site, was not the top bidder. It ranked No 2, after a consortium of Hoi Hup Realty, Sunway Concrete Products and Oriental Worldwide Investments.
Other bidders are Chng Gim Huat, SP Development, Boon Keng Development and CEL Development.
Knight Frank’s director of research and consultancy Nicholas Mak said the first DBSS project gave developers confidence to bid even higher this time.
“The first DBSS project was untested and developers had questions over whether consumers would take to the project,” he told Today. Premiere @ Tampines was 10 times oversubscribed.
Mr Mak added: “The market is also doing very well. While the bids are fairly bullish, they also showed the developers’ confidence in the booming property market.”
Under the DBSS scheme, a private developer takes over the HDB’s role in deciding how the flats will look, what size units to build, and how the flats will be priced and marketed to the public.
Would-be buyers can expect more smaller flats at Boon Keng Road, which has a maximum allowable gross floor area of 67,647 sq m.
Following feedback from the first exercise, the HDB has stipulated that at least 30 per cent of the project should consist of four-room or smaller flats.
While the tender will be evaluated based on the tender prices, a HDB spokesman said it is “not bound to accept the highest or any tender”. The tender will be awarded in two weeks’ time.
Source : Today - 30 May 2007
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