SINGAPORE: A subsidiary company of City Developments (CDL) is the top bidder for a site to develop an executive condominium (EC) at Sengkang West Way/Fernvale Link.
The land parcel received a total of six bids at the close of tender on Thursday.
Verspring Properties has put in the highest bid of S$135 million or S$296 per square foot per plot ratio (psf ppr).
This is 0.1 per cent higher than the second highest bidder, JBE Development, which put in a tender price of S$134.85 million.
This is the first out of the eighth EC site sold by the government this year with land price at below S$300 psf ppr, noted SLP International's Research Head Nicholas Mak.
"This reflects the more cautious mood among developers regarding the EC market in the northeast region due to the large supply of condo and EC in the pipeline," he added.
CDL said in a statement that it is looking at developing the 151,780-square-feet site into a high-rise EC development with an estimated 380 units.
The property giant added that it expects the development to be well-received "given the popularity of ECs in Singapore and its convenient access to the nearby LRT stations."
CDL noted the site is also near recreational amenities such as Sengkang Riverside Park, Sengkang Sports Complex and Sengkang Floating Wetland.
Established schools such as Nan Chiau Primary and Secondary Schools and Pei Hwa Secondary School are also nearby.
DWG Senior Research Manager Lee Sze Teck said the bids for this site has probably the tightest spread among all tenders for EC sites.
The site, which attracted six bids, is a reflection of developers' belief that the EC market is still robust, said ERA's Research Head Eugene Lim.
Mr Lee estimates the breakeven price at between S$560 and S$610 psf while the estimated selling price for the new project is around S$670 to S$720 psf.