Only two developers participated in the latest tender for an Executive Condominium (EC) site in Sembawang, but the highest bid was beyond the expected market price, according to media reports.
Qingjian Realty submitted the top offer of $229.4 million for the 309,418 sq ft site with a plot ratio of 2.1 located the junction of Sembawang Road and Canberra Link. This translates to 353 psf per plot ratio (ppr), surpassing the $300 to $330 range anticipated by experts.
TID Residential and City Developments Limited’s subsidiary, Verwood Holdings submitted the second highest bid of $208.5 million or about $321 psf ppr.
“I believe the main reason for the low participation rate from developers in this land tender is the steady supply of new EC project launches from 2015 onwards,” said SLP International’s Executive Director Nicholas Mak.
“Excluding Bellewoods EC, which had launched its e-application exercise last weekend and the subject site, there are four other unlaunched EC projects with a total of 2,230 units in the north region presently,” he noted.
In particular, Qingjian Realty plans to use the 99-year leasehold site, which has a maximum gross floor area of 649,778 sq ft, for its sixth EC project consisting of 600 hybrid homes.
“The EC land at Sembawang Road/Canberra Link is about 400 metres from the proposed new Canberra MRT station and we are planning to develop about 600 units in that location,” said Li Jun, the company’s General Manager.
Image source: HDB
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
