Boon Lay Way Residential Site Attracts Top Bid of S$369.4 million
by Ernie B. Calucag
The tender for the residential site at Boon Lay Way has attracted 12 bids, with a top bid amounting to S$369.4 million, the Urban Redevelopment Authority (URA) said Tuesday.
MCL Land submitted the highest bid, which translates to a tendered sales price of about S$7,590 per square metre of gross floor area.
URA said the other bids for the 99-year leasehold site ranged between S$369.1 and S$251.0 million.
The land parcel spans 11,588 square metres and has a maximum permissible gross floor area of 48,670 square metres.
“The top bid of S$369.4 million translates to a breakeven cost of around S$1,100 per square foot (psf), which suggests that the selling price for the residential units will be between S$1,200 psf and S$1,300 psf,” said Li Hiaw Ho, Executive Director at CBRE Research.
The subject site is located at Boon Lay Way, in the heart of Jurong East HDB town and within the Jurong Gateway zone.
This entire location is part of the Jurong Lake District, which the government is planning to transform into a unique waterside destination for business and leisure in the next 10 to 15 years, said to be the largest regional hub outside the city centre.
It will be developed into a commercial hub with a good mix of office, retail, residential, hotel, entertainment, food & beverage and other complementary uses.
“Although this is the third site in Jurong Gateway to be put up for tender, it is the first residential site to be sold. The number and the quantum of the bids reflected developers’ confidence that there will be a strong demand for private housing in this location,” noted CBRE’s Li.
URA said a decision on the award of the tender would be made after the bids have been evaluated.