An executive condominium (EC) site at Choa Chu Kang Avenue 5 which was launched for sale by the Housing and Development Board (HDB) on Tuesday is expected to attract tepid interest from developers, revealed OrangeTee research head Wong Xian Yang.
He predicts a total of three to six bids for the 99-year leasehold site with bid prices in the range of $290 to $330 psf ppr.
“There are limited pull factors for this site, with few nearby amenities. Sunshine Place is within walking distance (assuming a route through the HDB blocks). Accessibility is low, considering that there are no nearby LRT or MRT stations. The adjacent site is reserved for a school,” stated Wong.
But the scarcity of EC projects in the area could support interest for the site.
OrangeTee noted that The Rainforest is the only EC to have launched in Choa Chu Kang in recent years. Jointly developed by CDL and TID, it was launched in January 2012 at a median price of around $754 psf.
Older EC developments in the vicinity include the Quintet, Windermere and Yew Mei Green.
“But developers should note that there are two projects in the pipeline, namely, Sol Acres by MCL Land and a site by Sim Lian, which together, should yield about 1,862 units. Sol Acres is expected to launch in 2H15, and would be a litmus test for current EC demand in the area,” Wong added.
The tender for the EC site which could generate about 490 units will close on 30 June 2015.
Image source: HDB
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
