Property News · February 27, 2018

Sumang Walk EC site attracts 17 bids


Map showing the location of the EC site at Sumang Walk. Source: HDB
The tender exercise for an executive condominium (EC) site at Sumang Walk in Punggol closed on Tuesday (27 Feb) after attracting 17 bids, said the Housing and Development Board (HDB).
The top bid of $509.37 million was jointly submitted by property developers City Developments Limited and TID Residential. This works out to about $583 psf on the gross floor area (GFA).
Qingjian Realty (Residential) was the second-highest bidder at $486 million, followed by a $450 million offer from Yanlord Singapore Residential and Soilbuild Group Holdings.
Launched for sale on 12 December 2017, the 291,233 sq ft site has a maximum GFA of 873,698 sq ft and a plot ratio of 3.0.
Offered on a 99-year lease, the site is expected to yield some 820 EC units.
Dr Lee Nai Jia, head of research at Edmund Tie & Co., said the site has several attractive attributes, including its proximity to Waterway Point and the upcoming Punggol Digital District.
“There will also be a substantial rental catchment when the Digital District is up and running. Additionally, there are not many competing EC developments in the market currently,” he said. 
Based on the land rate, he expects the breakeven price to fall between $1,000 to $1,100 psf ppr.
“While the winning bid is considered high relative to past launch prices, the demand for the site is expected to be supported by buyers’ positive outlook of the area. Furthermore, with prices of new private homes trending upwards, the final selling price of the future EC development will be an attractive option for investment,” noted Lee.
A decision on the award of the tender will be made after the bids have been evaluated, said HDB. 
 
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

Source : proppertyguru.com.sg/Property Market
Read more…Sumang Walk EC site attracts 17 bids

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