Weak response to tender for prime suburban mixed development site

Mr Ong Teck Hui, Senior Director, Research & Consultancy, Singapore
王德辉, 研究与咨询部董事(新加坡)

SINGAPORE - The white site at Pasir Ris Central was put up for tender on 27 August 2018. With a land area of 38,003.7 sqm and maximum gross floor area (GFA) of 95,010 sqm, it is to be developed for mixed commercial and residential use. Commercial GFA is not to be lower than 25,000 sqm while no more than 600 residential units can be built in the development. The subject site is adjacent to the Pasir Ris MRT station and a bus interchange is to be incorporated into the development providing seamless travel for commuters.

Tender for the land parcel is based on the Concept and Price Tender System and the tender evaluation criteria include:

1. Quality of design concept (40%)
2. Quality of public realm (30%)
3. Track record (30%)

Tender closed today with only three bids received. This is below expectations, given its prime location next to the Pasir Ris MRT station, which holds good promise of a successful retail mall and keen demand for the residential units. While potential bidders would have taken into account the relatively high absolute land price and the technical conditions, the weak response does reflect concerns over the market outlook. With cooling measures still hampering the private home market and an economic slowdown expected in 2019, it is understandable for potential bidders to be cautious.