Location map of the land parcel at Canberra Link. Source: HDB
The tender for an executive condominium (EC) site in Canberra Link received nine bids, with Hoi Hup Realty and Sunway Developments submitting the highest bid of $271 million.
Launched for sale on 28 June, the 99-year site has an area of 18,040.6 sq m and a gross floor area of 45,101.50 sq m.
While interest for the site remained healthy, it pales in comparison to the 17 bids received for the last EC site at Sumang Walk that closed in February 2018, noted JLL Singapore head of research and consultancy Tay Huey Ying.
In fact, the $558 psf per plot ratio (psf ppr) top bid received for the Canberra Link site is 4.3 percent lower than the $583 psf ppr achieved for the Sumang Walk site.
“Perhaps, developers have taken into account the additional five percent non-remittable ABSD that they have to pay for sites acquired after 5 July 2018 in their tender submission,” she said.
The last EC site sold via public tender within the Sembawang area was in October 2014. With only two bids submitted, the site achieved an average price of $353 psf ppr then, revealed Knight Frank Singapore senior director and head of research Lee Nai Jia.
“The EC market continues to generate healthy interest,” said Desmond Sim, CBRE head of research for Singapore and Southeast Asia. “This is as this segment for the ‘sandwiched class’ remains limited in stock, with less than 20 units unsold in the pipeline as of Q2 2018.”
Tay estimates the breakeven price for the new EC at Canberra Link to stand at between $950 psf and $1,000 psf.
“This could translate to higher selling prices than the last EC project launched at Rivercove Residences along Anchorvale Lane in April 2018, which was sold at an average of $976 psf based on caveats lodged,” she added.