An executive condominium (EC) site (pictured) at Yuan Ching Road/Tao Ching Road drew 16 bids at the close of its tender on Tuesday, according to the HDB. The 217,298 sq ft site with a maximum gross floor area (GFA) of 651,895 sq ft was among three EC sites offered on 99-year leases.
A consortium comprising Evia Real Estate, BBR Development, CNH Investment and OKP Land submitted the highest bid of S$272.83 million or S$419 per sq ft on the GFA.
According to Desmond Sim, Associate Director at CBRE Research, the relatively stronger response for the Yuan Ching Road site compared to the other two plots may be “because it is the first EC site tender in Jurong West since the withdrawal of a previous tender in the area in July 2010”.
“The confidence in the Jurong story, coupled with the recent strong showing for J-Gateway, most likely prompted the highest bid of S$419 per sq ft for the site. The breakeven is estimated to be in the region of S$800 per sq ft, which translates to a selling price of about S$900 psf. This launch price could set a new record for the EC market.”
Meanwhile, the second site at Punggol Central/Edgedale Plains received a total of eight bids with the top bid of S$156 million or S$356 per sq ft/GFA submitted by Master Contract Services and Keong Hong Construction. It has an area of 146,010 sq ft and a maximum GFA of 438,030 sq ft.
The remaining land parcel at Punggol Drive/Edgedale Plains has an area of 259,031 sq ft and a maximum GFA of 880,706 sq ft. It attracted six bids with Peak Square posting the highest offer of S$312.8 million or S$355 per sq ft/GFA.
Considering the large number of existing EC projects in Punggol, developers were cautious and instead submitted bids for the Yuan Ching site, said Sim.
He added that the simultaneous closing of tenders has not affected developers’ appetite for sites, mainly due to the positive outlook for EC market demand going forward.
Nikki De Guzman, Junior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email email@example.com