SINGAPORE — The only confirmed executive condo (EC) site from the Government Land Sales programme for the first half of this year was released for tender yesterday, but analysts expect bids to be subdued because of its location.
The 99-year leasehold parcel on Choa Chu Kang Avenue 5 has a site area of around 176,378 sq ft, said the Housing and Development Board (HDB) yesterday. The HDB is the Government’s land sales agent. The site has a maximum gross floor area of 529,135 sq ft and can yield an estimated 490 units.
Property analysts have predicted the tender to receive up to half a dozen bids when it closes on June 30. The site has limited pull factors as there are no nearby Light Rail Transit or MRT stations, they said.
“The subject site is almost 2km away from the nearest MRT station, which is Choa Chu Kang Station. There is also a lack of attractive scenery around it,” said Mr Nicholas Mak, executive director of SLP International Property Consultants. He expects the top bid to come in at between S$250 per square foot per plot ratio (psf ppr) and S$285 psf ppr.
But Mr Wong Xian Yang, research and consultancy manager at OrangeTee, had a more optimistic projection of S$290 psf ppr to S$330 psf ppr, noting that there is a lack of EC projects in the area. In recent years, there was only one new launch: The Rainforest in 2012 , which sold at a median price of S$754 psf.
Mr Wong added: “But developers should note that there are two projects in the pipeline, namely Sol Acres by MCL Land and a site by Sim Lian Group, which together should yield about 1,862 units. Sol Acres is expected to launch in the second half of this year, and would be a litmus test for EC demand in the area.” Another executive condo that is expected to launch in mid this year is The Brownstone EC.
Demand for ECs has waned in recent months after the implementation of property curbs such as mortgage servicing ratio caps and the resale levy. Developers are also allowed to launch units for sale only 15 months after securing land or completing physical foundation works.
An EC site on Woodlands Avenue 12, whose tender closed in February, drew the lowest bid for such sites in nearly four years. Local developer Hao Yuan Investment won the tender for S$103.8 million, or about S$278 psfppr, against a field of seven bidders.