It has been reported that executive condominium segment was facing a huge shortage in supply. During the last years, the number of EC units sold by the developers amounted to 4,011. Despite this shortage in supply, 17 bids were fetched by an executive condominium (EC) site at a state tender. This site is located in SumangWalk in Punggol and the tender closed this Tuesday. Housing and Development Boardwas given the responsibilityof conductingthis tender. The board was also state’s acting Land sales agent.
These 17 bids in question have said to broken the previous bidding record in EC land. The site for which the record was made is Lake Life Site. It is located in Yuan Ching Road/Tao Ching Road. The record was made in July 2013.
Out of these 17 bids, the top bid was made by a joint venture of TID Residential (owned by TID Pte Ltd) and CDL Constellation (a subsidiaryof City Developments). The value of this top bid is S$509.37 million and it is a record in itself with regards to psfpprworth S$583.
The top bid made for this EC site in Sumang Walk is 64% higher as compared to the last top bid placed in August 2016. for the Anchorvale Lane. The value of its top bid was S$355 psfppr.
The second highest bid was recorded as S$486 million, 4.8% lower than the top bid. It was made by Qingijiang Realty. The thirdspot, in the top bid rankings, was jointly held by Soilbuild Group Holdings and Yanlord Singapore Residential. They offered S$450 million for this EC site. It was followed by a bid of S$446.6 million from a joint venture of Sunway Developments and Hoi Hup Realty.
An S$431.69 million bid was placed by Changi Properties, Sing Development, and FEC properties jointly. Next came a joint venture of Gamuda (Singapore) and Evia Real Estate as they placed the bid of S$426.37 million. MCC Land (Singapore) placed a bid of S$413.7 million and the lowest (S$373.81) was placed by Ho Bee Land unit HB Lombard.
The reason for these record-breaking bids, as per analysts, is said to be the lack of new EC sites in the market. During the last year, there was only one EC site offered in the GovernmentLand Sales Programme for sale, which is The Sumang Walk. As per Ong Teck Hui, JLL national director, these bids proved to be higher than their expectations. He is of the view that since last 1.5 year, there was no EC land tender. It contributed to the record-breaking bids. Othercontributions, as per his views, were made by a noted surge in the privateresidential market and unsold stock in the undersupplied market. It is assumed that the prices of EC are expected to rise by 20% by the completion of this project.
The top bidder of this project, CDL will be handling their 9thEC project. They have a positive outlook for this project. Sherman Kwek, CE of CDL, is of the view that the company has confidence in this project. They believe it is going to be successful due to its ideal location and various other features i.e. close proximity to various stations, easy accessibility, and various other amenities.
The article below might give you a more information on this EC land land bid
https://www.businesstimes.com.sg/real-estate/cdl-tid-joint-ventures-top-bid-for-punggol-site-sets-record-for-ec-land
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