A joint venture between Singapore’s two biggest listed property giants -- CapitaLand Limited and City Developments Limited (CDL) -- won the mixed-use residential and commercial site in Sengkang Central at a tender price of $777.78 million. The price works out to a land rate of $924 psf ppr.
The duo emerged at the top of four bids shortlisted for the price evaluation stage after clearing the first stage, which was the concept proposal stage and had sevenibidders. This was a two-envelope tender system based on concept and price revenue.
The 3.7 ha (37,000 sq m) site is the largest commercial and residential site awarded since 2015. The future integrated development will comprise 700 apartments, a hawker centre, community club, childcare centre, retail shops, as well as public rail and bus transport facilities. The new project is scheduled for completion in 1H2022.
The future integrated development will comprise 700 apartments, a hawker centre, community club, childcare centre, retail shops, as well as public rail and bus transport facilities (Credit: CapitaLand/CDL)
According to the joint venture partners in a release on Aug 16, the new non-remittable and revised ABSD rate imposed on all developers buying residential sites will not apply for the Sengkang Central site. “This is the first GLS site where bids were submitted before the introduction of the July 6 cooling measures,” says Desmond Sim, CBRE head of research for Singapore and Southeast Asia.
Located in the heart of Sengkang Central, the site has direct access to Buangkok MRT station and the future bus interchange. It is a 20-minute drive to the CBD and within easy access of major expressways such as the KPE, SLE and CTE. It is also just nine MRT stops from Dhoby Ghaut MRT interchange station, which is equivalent to a 25-minute ride. The future Punggol Digital District and Seletar Aerospace Park are also nearby.
Lim Ming Yan, CapitaLand Group president and group CEO sees the partners transforming the site into “a landmark development that will be an identity marker and new focal point for the Buangkok neighbourhood”.
The joint venture partners intend to build a landmark development that will be an identity marker and new focal point for the Buangkok neighbourhood (Credit: CapitaLand/CDL)
CDL is familiar with the area having developed and fully sold the 616-unit Jewel @ Buangkok that was completed in 2016 and located across the road from the new site, says Sherman Kwek, CDL group CEO. “Over the years, CDL has built up a strong track record for compelling design concepts which has enabled us to secure prime sites like The South Beach and Quayside Collection in Sentosa Cove under the two-envelope system.”
Given the strong residential catchment, the retail mall, “if positioned correctly, is likely to perform well”, says Lee Nai Jia, Knight Frank Singapore senior director and head of research.
Meanwhile, CBRE’s Sim sees the developers leveraging the potential of the site to develop the Sengkang community and transport hub “to serve the Sengkang and Buangkok housing estates and inject much vibrancy into the area.”