Why is outlook on the EC market optimistic?

A STATE tender for a 99-year leasehold executive condominium (EC) site along Anchorvale Lane in the Sengkang area has attracted a whopping 16 bids.

The highest bid – from Hoi Hup Realty, which teamed up with Sunway Developments – was S$240.95 million, which works out to slightly over S$355 per square foot per plot ratio (psf ppr). Recent executive condo launches include Treasure Crest and Northwave EC while existing ones include The Terrace EC, Brownstone EC, The Visionaire EC, Parc Life EC , Waterwoods EC, Signature at Yishun, Skypark Residences, Wandervale EC, The Vales EC, The Criterion EC, The Amore EC,  Bellewaters EC, Bellewoods EC.

The second highest bid, S$235 million (or S$346.30 psf ppr) , was from Wee Hur Development. Robert Kuok’s Allgreen Properties was the third highest bidder, at S$226.90 million (or S$334.37 psf ppr).

“Since so many parties were bidding competitively, their outlook on the EC market would be fairly optimistic, probably expecting a pick-up in demand and improvement in prices when the project is launched in late 2017 or early 2018,” noted Mr Ong Teck Hui, JLL national research director.

City Developments’ unit Bellevue Properties was the lowest bidder, at S$176 million or S$259.36 psf ppr.

The 2.1-hectare site can generate about 635 homes.

The land parcel is near Tongkang LRT Station.

Other bidders at the tender included a tie-up between Sing Holdings and Maxdin; Kheng Leong Company in partnership with Singland Homes; Sim Lian Land; Qingjian Realty (Residential); China Construction (South Pacific) Development Co; Nanshan Group Singapore Co; Greatview Investment; Soilbuild Group Holdings; and CEL Real Estate Development.

executive condo photo 3