An executive condominium (EC) site at Choa Chu Kang Avenue 5 drew 11 bids. Qiangjian Realty-led consortium submitted the highest bid of $295 per sq ft per plot ratio (psf ppr). Going by the bid price, the breakeven cost for the project is estimated at $650 psf, translating to an attractive launch price of $750 to $780 psf.

The latest EC site sold in Choa Chu Kang was sold to Sim Lian Land for $361 psf ppr in September last year. Separately, MCL Land paid $339 and $375 psf ppr for its Sol Acres site at Choa Chu Kang Grove. Sol Acres, a 1,327-unit EC project, is currently open for application.

Although Qingjian’s bid was 7% higher than the second highest bid, the average of the 11 bids stood at $240 psf ppr, indicating cautious sentiment among developers. CBRE’s South East Asia research head Desmond Sim says “The 11 bids seem to suggest that developers are still looking to replenish their land banks but their enthusiasm is curbed by the current market conditions such as the growing number of unsold ECs. Thus bid prices continued to trend below $300 psf ppr and land prices for ECs appear to have reverted to 2011 levels. With the lower bid prices, developers who participated in the tender were probably looking at the possibility of pricing the project more competitively.”

Mr. Sim also noted that this tender closed at a time when the income ceiling revision for eligible buyers is being discussed. Any positive revision could benefit the winning bidder when the project is launched.

Site location

Provisional tender results