3 properties were released for sale recently which, when grouped together, equates to a yield of 1,700 homes. These properties were and Executive Condominium running along Choa Chu Kang Drive and 2 Sengkang sites that are private residential. All three are 99 year leasehold parcels and are the last on the H1 2014 confirmed list to be released for sale under the Government Land Sales Program.
The two private residential parcels are situated in Sengkang on Fernvale Road. One of these offers 16,604 square meters of space and the second a larger 17,414 square meters. The two together have the capacity to yield over 1,100 units and both tenders will be closing on August 7th. Also, both are a short walk to the Thanggam LRT station which is linked to the Sengkang MRT station.
Sengkang Plots of Residential Sites
The neighborhood that these twin properties are located in have amenities such as the Seletar Mall that is currently being built, Punggol Waterway, Sengkang Green Primary School and Sengkang Riverside Park.
Last year saw two nearby residential parcels sold that are now the sites of UOL Group’s Riverbank at Fernvale and the Frasers Centerpoint Homes group’s Rivertrees Residences. Rivertrees was sold for a price of $533 per square foot per plot ratio and Riverbank went for $489 per square foot per plot ratio.
Analysts are expecting a somewhat more measured response this time around with an expected 5 bids per site and a possible high bid of $420 to $480 per square foot per plot ratio. This is taking into account the abundance of supplies in this area, the encouraging sales of the earlier two projects and a private housing market that has been softening.
Choa Chu Kang Drive Executive Condominium Site
Choa Chu Kang Drive’s executive condominium site, which is the third of its kind to be sold this year in the Choa Chu Kang area, is expected to bring 535 homes onto the market once it has been developed.
February saw the closing of tender of 2 Executive Condo parcel in the Choa Chu Kang Grove area. It was MCL Land who won the high bid and acquired the two sites together for an average price of $357 per square foot per plot ratio.
The Choa Chu Kang Drive site closed tender on September 4th and analysts are expecting it to bring in 5 bids with a high bid of between $310 and $350 per square foot per plot ratio. The site is a mere 500 meters from the Choa Chu Kang MRT line.
Since January of 2013 Executive Condominium sales have been quite slow due to a ruling that meant developers of executive condo sites that were on land purchased by the government could only launch projects 15 months after they acquire the land parcel or upon completion of any foundation work. Because of this we are seeing developers bidding more realistically for EC land.