Developers still keen to build ECs

Muneerah February 13, 2015

Developers still keen to build ECs

The land parcel at Woodlands Avenue 12 for Executive Condominium (EC) housing received seven bids, with Hao Yuan Investment topping the list with a bid of $103.79 million or about $278 per sq ft (psf) per plot ratio (ppr).

This is 3.8 percent more than the second highest bid tendered by Allgreen Properties who submitted a bid of $99.98 million for the 12,388.3 sq m site, which is expected to yield 390 housing units.

Colliers International’s Director of Research & Advisory Chia Siew Chuin said the low unit price tabled was also fairly similar to bid from Sim Lian Group for an Anchorvale Crescent plot at $280 psf ppr. “To date, the Anchorvale Crescent parcel represents the lowest price on a psf ppr basis that has been awarded for an EC site on the Government Land Sales (GLS) programme since July 2011,” she added.

According to Chia, the seven bidders show developers are still keen to participate in EC development despite the challenging environment, given the slow take-up for such units amid weakened demand from HDB upgraders, a result of falling HDB resale prices.

The rather unexpected high number of bidders in the tender provides some positivity in what many might consider a muted market. In the preceding two tenders for EC sites located in the north, the Anchorvale Crescent parcel received three bids, while the plot at Sembawang Road/Canberra Link garnered two bids, she said.

The government will announce on the award of the tender for the Woodlands Avenue 12 (pictured) at a later date after the bids have been evaluated.

 

Muneerah Bee, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email muneerah@propertyguru.com.sg

PropertyMarketOutlook2015-DailyNews

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