CDL-TID joint venture’s top bid for Punggol site sets record for EC land
At the end of tender for Sumang Walk Executive Condominium (EC) site this Feb 27, Singapore listed property giant “City Developments Ltd” and joint venture partner “TID Pte Ltd” dominated the others 16 bidders with a maximum bid of value $509.37 million which is $583 psf per plot ratio.
“This can be marked as an all-time record value in the EC land sales market,” revealed the ZACD Group’s executive director, Nicholas Mak. The land rate being 39.3% much higher than the previous record of $418.53 psf ppr, set by “Lake Life EC site in the Jurong Lakeside district”, adds Mak.
The winning bid was 4.8% greater than the second highest bid value of $486 million equivalent to $556 psf ppr, which came from “Chinese developer Qingjian Realty”. The third highest bid value being $450 million ($515 psf ppr) came from Singapore listed, China-based developer “Yanlord Land Group” and Singapore based privately held “Soilbuild Group Holdings”.
This 291,235 sq ft, 99-year leasehold EC site is fenced by Punggol Way, Sumang Walk and Sumang Link. It covers a maximal gross floor area of 873,705 sq ft and plot ratio being 3.0. The site is also placed just opposite to Punggol Cove Primary School.
As per CDL, the new development should comprise 13 blocks of 10 to 17 storeys with 820 units in total. CDL CEO “Sherman Kwek” says this site, being placed next to My Waterway at Punggol” provides the chance to create the landmark waterfront residence including pleasant views”.
ZACD Group Mak is expecting the break-even price for this project to be between $960 psf and $1,000 psf. “This should be 14% to 19% greater than the average price value of $842 psf at the recent launched EC project – Hundred Palms Residences”, says Mak. Developer being Hoi Hup, the 531-unit Hundred Palms Residences EC was completely sold within few hours of the launch during July 2017.