Fierce competition by developers for new housing site

SINGAPORE — A private housing site in Fernvale Road has attracted strong interest from developers, with Sing Development and Wee Hur Development jointly submitting the top bid of S$287.1 million in a closely-fought tender, Urban Redevelopment Authority data showed on Tuesday (Sept 27).

The 99-year leasehold land parcel, released from the Confirmed List of the second half 2016 Government Land Sales (GLS) programme, sits on about 17,196 square metres (185,096 sq ft) of land. With a maximum permissible gross floor area of 51,588 square metres (555,288 sq ft), it can yield an estimated 600 homes. The bid from Sing Development and Wee Hur Development, which topped 13 other bids, translates to S$517.03 psf per plot ratio. Recent EC launches include Treasure Crest and Northwave EC while existing ones include The Terrace EC, Brownstone EC, The Vales EC, Parc Life EC , Sol Acres EC, The Visionaire EC,  Bellewoods EC, Signature at Yishun, The Criterion EC, Waterwoods EC, Skypark Residences, Wandervale EC, The Amore EC,  Bellewaters EC.

Mr Nicholas Mak, Executive Director and Head of Research & Consultancy at SLP International Property Consultants, said the tender drew keen interest from developers due to the site’s location that is less than 100 metres to Thanggam LRT Station as well as the absence of upcoming mass-market condominium projects in the Sengkang area.

The top bid is only 0.005 per cent or S$13,399.06 higher than the second highest bid, which could be the closest price gap in the history of the GLS tenders, he noted. The bidding was so competitive that the highest and fifth-highest bid were only 5.8 per cent apart.

The strong sales of the nearby High Park Residences might also have encouraged the developers to bid for the subject site, Mr Mak said. “The top bid was 15.3 per cent higher than the land price of the adjacent Fernvale Road (Parcel B) site which was later developed into High Park Residences. The higher land price and strong participation rate among developers indicate that many developers are hungry for land,” he said.

The estimated breakeven price ranges from S$980 psf to S$1,030 psf, Mr Mak said, adding that the new condominium on the site could be launched at above S$1,100 psf from late-2017 to early-2018.

signature at yishun ec executive condo site pic 1