Mirroring the soft outlook for executive condos which has followed the introduction of a cap on mortgage service ratios for any executive condo purchases from developers, a recent state tender for a Sembawang Avenue EC only pulled in 4 bids.
The top bid amount for this property came in at $320.11 psf ppr and is much lower than an EC site in the same area that was up for sale in January that brought in a figure of $350 psf ppr. Furthermore, that same site, which is located along Canberra Drive, is located further from the Sembawang MRT Station than this newer EC and it drew in 6 bids in total.
Results for Sembawang EC tender mirrors slower market
Yesterday’s closing tender brought a top bid from Keong Hong Holdings and Frasers Centerpoint, a tie up between units.
Executive condominiums are a hybrid of private and public housing that allows the lifting of resale conditions and initial buyer eligibility 10 years after the project has been completed.
Looking at figures on an island-wide basis and including this latest site, 13 EC projects that would bring over 7,000 units until 2015, would be in the launch pipeline. This supply would temper bidding for these sites significantly.
2 Executive Condominiums so far in Sembawang
An earlier EC that is now under development into SkyPark Residences stands next to this newest plot on Sembawang Avenue and drew in 8 bids in December of 2012 with a winning bid of $324 per square foot per plot ratio.
November of 2013 saw the releasing of SkyPark Residences which was able to achieve an $800 psf average sales price during that month of sale. According to data that has been released by URA, as of the end of May 2014 205 of its 506 units are still unsold.
The duo of Keong Hone and Fraser Centerpoint plan to develop close to 660 units on the Sembawang Avenue site. Their bid was just slightly over the 2nd high bid offer of $315.50 per square foot per plot ratio made by a partnership between TID Residential and an offshoot of City Development called Verwood Holdings. The remainder of the bids were placed by CEL Residential Development, which is a unit of Chip Eng Seng, for $282.44 per square foot per plot ratio, and a bid of $270.64 per square foot per plot ratio from Sim Lian Land.