Seven bids for Sengkang plot

An executive condominium (EC) spot at Sengkang has attracted seven property developers with a top bid of $176 million, which is above market expectations. However, the aggressive bidding by property developers seems to have abated, according to analysts.

The seven bids are less than the 18 bids that a recent tender in Simei attracted.

The top bid for the Sengkang plot was lodged by a joint venture between Lee Metal Group's Lee Carriers and Maxdin, part of United Engineers' unit Greatearth Holding, according to HDB.

The $176-million joint bid works out to about $321 psf ppr for the  Senkang site which has a total area of 182,997 sq ft. Compared with the minimum price of $103.8 million offered by an unidentified developer, who started the plot’s tender last month, the sale price is higher by 70 percent.

It is 10 percent higher than the second-highest bid lodged by Hoi Hup Realty and Sunway Developments at $160.1 million. The lowest bid was $115.8 million by Sim Lian Land, Qingdao Construction (Singapore) and Frasers Centrepoint Limited.

The Sengkang EC site, at Sengkang East, is served by the Sengkang LRT system and it could yield 465 homes. ECs are condominium-style homes but with public housing rules. Analysts expect that the new units could be launched at prices above $650 psf and the developers breakeven cost will range from $590 to $620 psf.