EC site at Canberra Link receives healthy interest with 9 bids

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The Housing & Development Board (HDB), on September 4 announced that it has received 9 bids for its executive condominium site (EC site) at Canberra Link. HDB being the Government’s land sales agent for the EC site, launched the land parcel at Canberra Link for tender on 28 June 2018.

The details of the EC sale site are as follows:

Location Canberra Link
Proposed Development Executive Condominium Housing
Site Area 18,040.6 sq m
Maximum GFA [GPR] 45,101.50 sq m [2.5]
Maximum Building Height 45m to 50m AMSL
Estimated No. of Dwelling Units 450*
Lease Term 99 years
Project Completion Period 60 months from date of acceptance of tender

HDB said that the actual number of dwelling units provided by the successful tenderer may vary. The tender closed at 12 noon today with 9 bids received. The details of the provisional tender results for the executive condominium site are below:

S/N Name of Tenderer Tender Price
($)
$psm/GFA
($)
1 Hoi Hup Realty Pte Ltd and Sunway Developments Pte Ltd $271,000,000 $6,008.67
2 Greatview Investment Pte Ltd and MCC Land (Singapore) Pte Ltd $258,890,000 $5,740.16
3 CNQC Realty (Treasure) Investment Pte. Ltd. $252,770,000 $5,604.47
4 Evia Real Estate (8) Pte Ltd & Gamuda (Singapore) Pte Ltd $250,888,888 $5,562.76
5 CDL Constellation Pte. Ltd and TID Residential Pte. Ltd. $245,800,000 $5,449.93
6 UED Residential Pte. Ltd. And TSKY (Jervois) Pte. Ltd. $239,167,802 $5,302.88
7 Peak Land Pte. Ltd. $228,300,000 $5,061.92
8 Sim Lian Land Pte Ltd $205,000,000 $4,545.30
9 JBE Development Pte Ltd $201,821,000 $4,474.82

HDB said that it would make a decision on the award of the tender for the EC site after the bids have been evaluated and that its decision will be announced at a later date.

Commenting on the bids received for the EC site at Canberra Link, JLL, a leading real estate services company said: “Although interest in the Canberra Link EC site remained healthy with nine bidders participating in the tender, this pales in comparison to the 17 bids received for the last EC site at Sumang Walk that was closed in February 2018.”

No new Executive Condominium project on the market despite high demand

JLL added: “Price-wise, the top bid of SGD 558 psf ppr received for the Canberra Link is 4.3% lower than the SGD 583 psf ppr achieved for the Sumang Walk site in February 2018. Perhaps, developers have taken into account the additional 5% non-remittable ABSD that they have to pay for sites acquired after 5 July 2018 in their tender submission. Estimated breakeven price for the new EC at Canberra Link is estimated at between SGD 950 and SGD 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 were sold at an average of SGD 976 psf based on caveats lodged.”

JLL summarised the site attributes and tender results for the executive condominium site as follows:

 

  Dairy Farm Road Jalan Jurong Kechil Canberra Link
Use Residential with Commercial uses at 1st storey Residential Executive Condominium (EC)
Land Area (sqm) 19,647.7 14,234.9 18,040.6
GFA (sqm) 41,261.0 19,929.0 45,101.5
Est. No. of Units 500 280 450
Top Bid Price

(SGD)

368.8 million 215.0 million 271.0 million
Top Bid Price (SGD psf ppr) 830 1,002 558
No. of Bidders 5 3 9

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, said 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.”

EC site
Copyright: iCompareLoan.com

The demand for executive condominium improved with the positive sentiments in the residential property market after the government relaxed some of the market curbs in March 2017. The hunger for EC sites was evident in the 17 bids and record-breaking top bid attracted by the Sumang Walk Executive Condominium Government Land Sale site when tender closed in February 2018.

Grab the chance to own the best executive condominium through Rivercove Residences EC

But just a few years ago, with an oversupply of Executive Condominiums, the story was quite different. The demand for Executive Condominiums were driven by their relatively affordable price points for the ‘sandwiched’ class. In recognising this demand, the Government opened for application several sites on its reserved list for Executive Condominium developments.

In the 3-year period from 2015 to 2017, only four Executive Condominium land parcels were sold by the government. This translated to only 1.3 sites per year. In the 4th quarter of 2014, 2,505 new units were added as a result of a spillover from 4 new Executive Condominium launches. This situation further worsened with the launch of 10 new Executive Condominium projects (comprising of 5,544 units) from January 2015 to April 2016. This surge was attributed to the government’s series of property cooling measures.

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