The tender exercise for an executive condominium (EC) site at Sumang Walk in Punggol closed on Tuesday (27 Feb) after attracting 17 bids, said the Housing and Development Board (HDB).
The top bid of $509.37 million was jointly submitted by property developers City Developments Limited (CDL) and TID Residential. This works out to about $583 psf on the gross floor area (GFA).
Map showing the location of the EC site at Sumang Walk. Source: HDB
CDL’s joint venture bid topped the hotly contested tender by a 4.8 percent margin versus the second highest bid of $486 million submitted by Qingjian Realty (Residential). This was followed by a $450 million offer from Yanlord Singapore Residential and Soilbuild Group Holdings.
Launched for sale on 12 December 2017, the 291,235 sq ft site has a maximum GFA of 873,698 sq ft and a plot ratio of 3.0.
In the event that CDL and TID are awarded the 99-year leasehold site, the developers will explore an EC project comprising 13 blocks of 10 to 17 storeys with about 820 units.
Residents will enjoy waterfront living as the site is situated right next to My Waterway@Punggol. Nearby amenities such as Waterway Point, Punggol Plaza and Seletar Mall offer shopping, dining and entertainment options.
Sherman Kwek, CDL Group Chief Executive Officer, 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.
“Punggol, slated to be Singapore’s first Digital District, has an exciting future and we believe this will make the site very compelling to home buyers.”
This district will include sectors of the digital economy such as cyber security, artificial intelligence and Internet of Things (IoT) which will drive Singapore’s Smart Nation initiative.
Dr Lee Nai Jia, head of research at Edmund Tie & Co, said there will be a substantial rental catchment when the Digital District is up and running. “Additionally, there are not many competing EC developments in the market currently.”
Based on the land rate, he expects the breakeven price to fall between $1,000 to $1,100 psf per plot ratio.
“While the winning bid is considered high relative to past launch prices, the demand for the site is expected to be supported by buyers’ positive outlook of the area.
“Furthermore, with prices of new private homes trending upwards, the final selling price of the future EC development will be an attractive option for investment,” noted Lee.
A decision on the award of the tender will be made after the bids have been evaluated, said HDB.