Close fight for Sengkang EC site
Location map of the land parcel at Anchorvale Crescent. Source: HDB
Competition was tight for an executive condominium (EC) site measuring approximately 184,464 sq ft at Anchorvale Crescent in Sengkang, which attracted a total of seven bidders before the tender exercise closed on Friday (14 Sept).
According to the Housing and Development Board (HDB), the highest bidder is Evia Real Estate and Gamuda (Singapore), which offered $318.8 million, which translates to a land rate of $576 psf per plot ratio (psf ppr).
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The second top bidder is Qingjian Realty, which submitted a bid of $318,888,000 or $576.198 psf ppr.
“This has to be the tightest bid spread ever between the top two bidders for a GLS site. Notwithstanding the fact that another tender EC site was closed 10 days earlier, this site saw strong bidding by developers,” said Huttons Asia research head Lee Sze Teck.
Colliers International’s research head Tricia Song agrees. “The top bid barely edged out the second highest bidder by just $899 or 0.0003 percent, and the tight margin of just 15 percent between the top and last bidder showed the consensus of pricing among developers.”
Song noted that the highest bidder is a joint venture between Evia Real Estate and Gamuda, which last teamed up for GEM Residences. Evia Real Estate is also no stranger to building ECs as it constructed Heron Bay in 2012 and Lake Life in 2013.
Song pointed out that EC sites in Singapore continue to attract strong interest from property developers. In fact, the Canberra Link EC plot tender that closed on 4 September drew nine bids, with Hoi Hup Realty and Sunway Developments offering $271 million or $558 psf ppr.
In comparison, two private residential sites in Jalan Jurong Kechil and Dairy Farm only managed to attract three and five bids respectively at the close of tender this month, following the introduction of the new property curbs in July.
Based on the $576 psf ppr top bid for the Anchorvale Crescent site, Song estimates that the EC to be built there would have a breakeven price of $900 to $950 psf ppr and an average selling price of $1,100 psf.
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Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
