New Executive Condo Site at Sumang Walk Attractive

SINGAPORE — The Housing & Development Board (HDB) has launched for sale an Executive Condominium (EC) site on Yio Chu Kang Road, with analysts saying the tender is likely to attract conservative bids from developers amid a large unsold inventory.

The 99-year leasehold site, released from the Confirmed List of the second half of the 2015 Government Land Sales programme, sits on a 198,302 sqf area and may yield 520 homes, said the HDB yesterday. It also released for application under the Reserve List yesterday an EC site at Sumang Walk in Punggol. This parcel has a land area of about 291,233 sqf and may yield 820 units.

The EC site at Yio Chu Kang is located near the popular Rosyth School, but is not near any MRT station. The tender for this land parcel closes on Feb 18, 2016. Upcoming executive condo (HDB EC)include The Visionaire EC , Wandervale EC and Parc Life EC while existing ones include The Terrace EC, Brownstone ECWaterwoods EC, Signature at Yishun, Skypark Residences, The Criterion ECBellewaters EC, Bellewoods EC.

“Developers will likely be mindful of the large unsold inventory of EC units and hence bidding is expected to be conservative,” said Mr Eugene Lim, Key Executive Officer at property agency ERA. “The development may only appeal more to buyers eyeing to secure a place in Rosyth School.” He expects the site to garner five to 10 bids, with the winning bid expected to be in the range of S$275 to S$325 psf and the projected selling price at S$750 to S$800 psf.

Meanwhile, the EC site at Sumang Walk, while attractive because of its proximity to Punggol MRT station and the newly completed Waterway Point shopping centre, is unlikely to be triggered for tender given the unsold EC inventory and its large land parcel size, Mr Lim said. Reserve list sites are triggered for a public tender only if a developer makes an acceptable opening offer.

“In view of the currently strong supply of EC in the market, it is unlikely the EC site at Sumang Walk will be triggered for tender in the next 6 months. In today’s market, the land price for this site is estimated to range between S$280 to S$300 psf ppr,” added Mr Nicholas Mak, head of Research & Consultancy at SLP International Property Consultants.

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