Real estate stakeholders commenting on the bids received for the tender of Executive Condominium (EC) site at Anchorvale Crescent, said the results prove that EC market fundamentals are strong. The Housing & Development Board (HDB), as the Government’s land sales agent, launched the Reserve List site at Anchorvale Crescent for tender on 10 Aug 2018. The details of the sale site are as follows:
|Proposed Development||Executive Condominium|
|Site Area||17,137.3 sq m|
|Maximum GFA [GPR]||51,411.90 sq m [3.0]|
|Maximum Building Height||64m AMSL|
|Maximum No. of Dwelling Units||550 (capped)|
|Lease Term||99 years|
|Project Completion Period||60 months from date of acceptance of tender|
The tender closed at 12 noon on 14 September with 7 bids received. The details of the provisional tender results are below:
|S/No||Name of Tenderer||Tender Price
|1||Evia Real Estate (8) Pte Ltd & Gamuda (Singapore) Pte Ltd||$318,888,899||6,202.63|
|2||CNQC Realty (Treasure) Investment Pte. Ltd.||$318,888,000||6,202.61|
|3||Hoi Hup Realty Pte Ltd and Sunway Developments Pte Ltd||$307,280,000||5,976.83|
|4||Greatview Investment Pte Ltd||$303,890,000||5,910.89|
|5||Sing Holdings Residential Pte. Ltd. and Changi Properties Pte. Ltd.||$295,100,000||5,739.92|
|6||Sim Lian Land Pte Ltd||$280,000,000||5,446.21|
|7||Anchora Development Pte. Ltd.||$277,222,000||5,392.18|
Commenting on the bids received for the site at Anchorvale Crescent, Mr Ong Teck Hui, JLL’s National Director of Research & Consultancy said the EC market remains a bright spot in the residential sector.
“The Executive Condominium (EC) site at Anchorvale Crescent with a permissible GFA of 51,411.9 sqm was launched for tender on 10 August 2018.
Tender closed today attracting seven bidders, with Evia Real Estate (8) Pte Ltd & Gamuda (Singapore) Pte Ltd putting in the top bid of $318,888,899 or $576.24 psf/pr
The top bid at $318,888,889 was only a hair breadth higher than the second highest bid at $318,888,000, reflecting the neck-to-neck tussle to secure the site. After tendering for the Sumang Walk and Canberra Link EC sites previously and failing to secure them, Evia Real Estate and Gamuda seems to have redoubled its efforts in today’s tender by bidding more robustly at $576.24 psf/pr. It is 3.2% higher than the top bid of $558.22 psf/pr for the Canberra Link EC site whose tender closed recently on 4 September.
The EC primary market remains a bright spot in the residential sector while the rest of the private home market has been cautious after the announcement of tightened cooling measures on 5 July. Supply in the EC sales pipeline remain limited, consisting of only the Sumang Walk and Canberra Link projects while demand from new EC buyers has been strong. The 628-unit Rivercove Residences which was launched in April is practically sold out at a median price of $973 psf.”
Ms Tricia Song, Colliers International’s Head of Research for Singapore said the results showed that there is a strong demand for EC market.
“The site received seven bids, with a top bid of SGD318.9 million or SGD576.2 psf ppr, in line with expectations. The top bidder was a JV between Evia Real Estate and Gamuda who last partnered in GEM Residences. Evia Real Estate is also no stranger to EC development, having developed Heron Bay EC in 2012 and Lake Life in 2013.
Interestingly, the top bid barely edged out the second highest bidder by just SGD899 or 0.0003%, and the tight margin of just 15% between the top and last bidder showed the consensus of pricing among developers.
Together with the Canberra Link EC site tender which closed on Sep 4 and saw nine bids and a top bid of SGD558.2 psf ppr, we believe there continues to be relatively stronger demand for EC land. This compared with the subdued three and five bids for the Jalan Jurong Kechil and Dairy Farm private housing sites which both closed on Sep 4, post measures. Developers appear to think that in light of the latest government curbs, EC units would still enjoy strong demand.
Based on the top bid of SGD576.2 psf ppr, we estimate a breakeven price of SGD900-950 psf ppr and an average selling price of SGD1,100psf.
This site tender was triggered in July with a successful application by an unnamed developer committed to a bid of at least SGD255 million or SGD460.8 psf ppr for the 99-year leasehold site. It was subsequently launched for tender on 10 August.”
The EC market demand 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.
But just a few years ago, with an oversupply of Executive Condominiums, the story was quite different for the EC market. 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.
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