Bidding for sites across Singapore are very actively taking place across Singapore. Developers firmly believe that supply and demand for executive condominiums will drive bidding higher and higher. There is a great deal of speculation where this will go during this year. Some analysts are still quite skeptical and warning developers to slow down a bit. That said, developers are not sharing their views and believe the market is ripe for picking.
City Development Land Constellation, in joint-venture with TID Residential, won the bid for executive condominium site, setting the highest record for Executive Condo Land. The winning bid was a stunning $509.37 million, equating to $583 per square foot per plot ratio. This price was higher than anyone could have imagined and believed it’s due to a shortage of executive condos in Singapore. The executive condo site on Sumang Walk in Punggol brought in an astonishing 17 bids and closed on Tuesday. Acting as land sales agent, the site’s tender was conducted by the Housing & Development Board.
Parc Botannia, a private new launch condo, was developed by Sing Development and Wee Hur and was considered the highest winning bid at $287.1 million. Needless to say, Punggol soared well beyond this bid.
The winning bid for Punggol was 4.8% higher than the second highest bid which came in at $486 million ($556.25 psf ppr), and followed by a bid of $450.
All the bids hit an all-time record high for any executive condominium land which was set back in July of 2013 for the Lake Life site in Tao Ching.
It is speculated there will be 820 units for this project. The 2.7 partial of land is directly across from the My Waterway At Punggol. This project is intended to turn Punggol into a waterfront area and is the longest man-made waterway in all of Singapore.
Public and private housing is partially supported by LIHTC or low-income housing tax credits, which are privately owned but must accept low-income residents for a number of years. In this case, only Singaporeans are eligible to buy executive condominiums.
At a stunning 64% higher outcome than what was the last executive condo tender in August of 2016 which fetched $355 psf ppr. This reveals only a handful of executive condos are on the market including the 628-unit Rivercove Residences in Sengkang. It is estimated that between the demand for executive condos and private residential sites, developers project the rise in the stock market will have a very positive outcome.
It is estimated that both City Development Land and TID Residential costs will be approximately $1,000 psf which is above other executive condo transactions in the area coming in at $860 psf. It is also estimated that prices for executive condos will rise another 20%when the project on Sumang Walk in Punggol is launched.
It is projected that Punggol will be slated as the first digital district in Singapore. The developers are very excited about their proposed project and are very confident that the success is due to its excellent location. It is strongly believed that the area’s attributes will be very desirable to buyers looking for homes.
This latest project will be nearby the local transport stations and bus service which is difficult to find around most executive condo locations. Also, it’s located by the My Waterway at Punggol will provide a fabulous opportunity for a landmark waterfront residential development with excellent waterfront views.
If awarded the project, the developers will consider a project that would cover quite a few blocks with buildings soaring 10 to 17 stories high. They believe this would allow for the very best waterfront views as the windows will face out to the Punggol Reservoir and the My Waterway at Punggol.
This will be their ninth project and due to the size of the land, there will be excellent landscaping allowances and designs.
In retrospect, coming in with a record high for a unit of land, the bids were just shy by 2 bids received for another site back in 1997.
During the first 6 months of 2018, three executive condo sites will be up for bidding. One plot will be on located in Sembawang through a confirmed list and two parcels of land will be offered through a reserve list. One being on Tampines Ave 10 and the other in Sengkang. The new EC along Tampines Ave 10, are closely situated nearby new launches, Alps Residences and The Tapestry @ Tampines.
With an improved market and high demand for executive condominiums as well as residential properties, developers throughout Singapore have very high expectations for projects during 2018. Bidding for many sites are at an all-time high and this latest project is a living testimonial to future growth. Only time will tell but it looks like the sky is the limit!