Channel NewsAsia

Tender for Sembawang Ave site attracts four bids

A residential site at Sembawang Avenue has received only four bids. A consortium comprising FCL Tampines Court and KH Capital submitted the highest bid of about S$214 million for the 22,189.7 square metre site.

SINGAPORE: A residential site at Sembawang Avenue has received only four bids. A consortium comprising FCL Tampines Court and KH Capital submitted the highest bid of about S$214 million for the 22,189.7 square metre site.

That translates to a unit price of about S$320 per square feet per plot ratio (psf ppr).

The second highest bid for the site came from a consortium that includes Verwood Holdings and TID Residential, at S$211 million.

The other two bidders for the land parcel are CEL Residential Development and Sim Lian Land.

The land parcel is meant for the development of executive condominium housing.

Property consultants said the low number of bids illustrates the more cautious outlook on the executive condominium (EC) market.

ERA's key executive officer Eugene Lim, said: "Developers are showing more caution with ECs now facing Mortgage Service Ratio (MSR) rules. It is tougher for buyers to afford an EC... As expected, bidding was moderate and realistic.

"With the land bid remaining low, it helps keep the prices of EC in check. They will also remain competitive against mass market condominiums."

Some 620 units are expected to be developed on the 99-year leasehold site.

SLP International's executive director of research & consultancy, Nicholas Mak, noted that adjacent EC, Skypark Residences, has been experiencing fairly slow sales.

It still has about 200 unsold units, seven months after launch date.

The site at Sembawang Avenue was launched for tender on May 29.

HDB said a decision on the award of the tender will be announced at a later date.

Tweet Photos, Videos and Update on this Story to  #cna