Sengkang Square/Compassvale Drive land plot receives 5 bids

A total of five bids were received by the Housing and Development Board (HDB) in the tender for a land parcel at Sengkang Square/Compassvale Drive.

The site, which has a gross floor area of over 22,000 square metres or a maximum gross floor area of over 67,000 square metres, is planned for a private housing development.

According to provisional results, the top bid came from local builder, EL Development for S$383 million.

This works out to S$528 per square ft.

The bid was 5.2 per cent higher than the S$501.76 per square ft per plot ratio paid by Keppel Land Realty Pte Ltd for the adjacent site where The Luxurie is currently being built on.

EL Development’s bid is some 10.2 per cent and 12.7 per cent above the second and third highest bids.

Property consultant Colliers estimated a breakeven cost of S$950-S$980 per square ft and estimated the selling price of the development to be above S$1,100 per square ft.

Typical three-bedroom units at the adjacent The Luxurie were transacted at S$920 to S$1,100 per square ft since the beginning of the year until May.

Although five bids were submitted for the site, analysts still see developers confidence.

Joseph Tan, executive director, residential, CBRE said: “The quantum of the bids signifies developers’ confidence in mass-market housing and in sites that are located near MRT stations.”

The 99-year lease site was launched for tender by HDB on 16 April.

HDB said it will evaluate the provisional tender results and award the tender at a later date.

Source : CNA – 2012 May 31