The tender for the Anchorvale Lane executive condominium site in Sengkang attracted 16 bids. It equalled the number of bids received in 2013 for the Lake Life EC site in Jurong. The strong competition could also be due to the fact that the plot on offer is the only EC site on this year’s confirmed list under the Government Land Sales programme.

“Developers’ interest was also fanned by the recent sales performance of Treasure Crest [at Anchorvale Crescent],” says Desmond Sim, head of CBRE Research, Singapore and Southeast Asia.

Treasure Crest EC sold well, with 362 out of a total of 504 units (72%) snapped up in the first weekend of sales. To date, developer Sim Lian is said to have sold about 85% of the project, at an average price of $742 psf.

A consortium comprising Hoi Hup Realty and Sunway Developments, submitted the highest bid of $241 million, or $355 psf per plot ratio (ppr). The second highest was $235 million ($346 psf ppr), from Wee Hur Development. The third-highest bidder came from Robert Kuok’s Allgreen Properties at $226.90 million ($334.37 psf ppr).

Nicholas Mak, head of research and consultancy at SLP International Property Consultants, estimates the break-even price for the new EC on this site to be between $740 and $780 psf, based on the land price.

“The developer would have to launch this EC project at an average price of more than $820 psf, which is a rather aggressive price,” says Mak.