Lorong Puntong site expected to draw strong bids amidst limited Bishan supply

Analysts expect up to eight bids as developers target scarce launch opportunities.

The Urban Redevelopment Authority's (URA) latest residential site at Lorong Puntong is expected to attract strong developer interest as limited new private housing supply in the Bishan-Thomson area supports demand.

The site, which can yield about 140 homes, has been launched for tender and will close on 15 September. Analysts expect four to eight bids, with top bid estimates ranging from $1,350 to $1,500 per square foot per plot ratio (psf ppr).

Justin Quek, Deputy Group CEO of Realion (OrangeTee & ETC) Group, said the area has seen few new private residential launches in recent years, creating pent-up demand.

"There has been a relative dearth in supply in Bishan," Quek said, noting that Artisan 8 was the only recent launch in the area, whilst Jadescape, launched in 2018, has since been completed.

Realion expects four to seven bids, with the highest bid between $1,400 and $1,500 psf ppr.

Analysts said the site's proximity to Ai Tong School and Bright Hill MRT station, which will become an interchange on the upcoming Cross Island Line, should support demand.

Mark Yip, CEO of Huttons Asia, said the site's estimated development cost of less than $200m makes it an accessible opportunity for developers. He expects up to eight bids, with a top bid of $1,400 to $1,500 psf ppr.

PropNex forecasts four to six bids and a top bid of around $1,350 to $1,450 psf ppr.

Wong Siew Ying, Head of Research and Content at PropNex, said developers are likely to be attracted by the site's location and manageable size, although they may also consider competition from the upcoming Thomson Reserve project, which is expected to launch later this year.