A total of 16 bids were attracted for Sengkang’s Anchorvale Lane EC site tender. This is the same number of bids as those received for Jurong’s Lake Life EC site in 2013. The high number of bids is mainly due to this being the sole EC site included in the Government Land Sales programme list for 2016.
According to Desmond Sim, “developers’ were hyped up by the recent sales performance of Treasure Crest EC at Anchorvale Crescent.” Mr Sim is the head of CBRE Research, Singapore and Southeast Asia.
The Treasure Crest EC chalked up a good sales performance with 362 units out of a total of 504 (or 72%) sold during the first weekend alone. At the moment, the developer Sim Lian has already sold around 85% of this project. Average price of Treasure Crest EC is at $742 psf.
The highest bid of $241 million ($355 psf ppr) was submitted by the Hoi Hup Realty and Sunway Developments consortium. Wee Hur Development came at second place at $235 million ($346 psf ppr), while the third highest was from Robert Kuok’s Allgreen Properties which bid $226.90 million ($334.37 psf ppr).
SLP International Property Consultants’ Head of Research and Consultancy Nicholas Make estimated that based on the land price, the break even price for the EC to be built on this site will be from $740 to $780 psf.
“The developer would have to launch this EC project at an average price of more than $820 psf, which is a rather aggressive price,” stated Mr Mak.