Record top bid for Sumang Walk land parcel slated for executive condominium development

Record top bid for Sumang Walk land parcel slated for executive condominium development

Singapore condo
File photo of a private condominium under construction in Singapore. (Photo: AFP/Roslan Rahman)

SINGAPORE: A land parcel at Sumang Walk attracted 17 bids at the close of its tender on Tuesday (Feb 27).

The Housing and Development Board (HDB) said the sale site, earmarked for executive condominium (EC) housing, received a joint top bid of S$509.37 million from CDL Constellation and TID Residential. This works out to about S$6,275 per square metre of the gross floor area (GFA).

Mr Ong Teck Hui, National Director for Research at JLL, said: “At $583 psf/pr, it is a stunning top bid for the subject parcel which is way above market expectations and also a record EC unit land price. 

"This is also 64 per cent higher than the top bid of S$355 psf/pr for the Anchorvale Lane site in August 2016, which was the last EC tender.”

Mr Ong said the absence of an EC land tender for one and a half years, an "undersupplied market" with less than 1,000 EC units unsold and a rising private residential market may have contributed to the "bullish outlook" among bidders.

"There seems to be an assumption that EC prices will rise by more than 20 per cent by the time the project on the subject site is launched," he added.

Sumang Walk EC site
Land Parcel at Sumang Walk (Image: HDB)

The tender for the 27,056.4 sq m site was launched on Dec 12, 2017. In a press release, HDB said the 99-year leasehold site can potentially yield a maximum of 820 dwelling units. 

The HDB added that a decision on the award of the tender will be made after all bids have been evaluated.

In the event that CDL and TID are awarded the site, they will explore an EC project comprising 13 blocks of 10 to 17 storeys with about 820 units and a basement carpark, CDL said in a statement on Tuesday.

Mr Sherman Kwek, group CEO of CDL, said: "We are very pleased to win this keenly contested Sumang Walk EC site. This will be CDL's ninth EC project and we are confident of its success given its excellent location and desirable attributes."

Source: CNA/zl