3 days ago
CDL sets new benchmark for EC land with $782 psf ppr bid for Woodlands plot
SINGAPORE - In a determined bid to replenish its executive condominium (EC) project pipeline, City Developments Limited (CDL) topped offers for two EC sites at tenders closing on Aug 5.
Both plots drew firm interest from five bidders, with CDL's bids also setting new benchmarks for EC land.
A Woodlands Drive 17 parcel for 420 units saw a top bid of $360.9 million or $782 per square foot (psf) per plot ratio (ppr), slightly over the previous high set by Sim Lian's $768 psf ppr bid for a Tampines EC tendered in October 2024.
The other EC parcel tendered, a plot in Senja Close in Bukit Panjang that can yield 295 units, was also topped by CDL at $252.9 million or $771 psf ppr.
Mr Sherman Kwek, CDL's group chief executive officer, said: 'We are delighted to have emerged as the top bidder for these two well-located and highly sought-after EC sites, in particular for the Woodlands Drive 17 site where our bid is 0.2 per cent over the next highest bidder.'
He added: 'With the full sell-out of our recent EC projects, Lumina Grand in Bukit Batok West and Copen Grand in Tengah, these two new sites totalling over 700 units represent a timely replenishment of our development pipeline in Singapore.'
Three out of five bids for the Woodlands plot came in above the previous high.
CDL's bid for the Woodlands site was a mere $1 psf ppr (0.2 per cent) higher than the second-highest of $360.3 million ($781 psf ppr) placed by a partnership between Sim Lian Land and Sim Lian Development. The next highest offer of $355.2 million, or $770 psf ppr, came from Intrepid Investments and TID Residential.
This was followed by a tie-up between Hoi Hup Realty and Sunway Developments, with a bid of $352 million, or $763 psf ppr. Coming in last was EL Development, which placed a bid of $328.1 million or $711 psf ppr.
Bids were at the higher end of analysts' expectations of $700 to $770 psf ppr.
Consultants predicted firm demand for the 25,207 sq m site, and had anticipated four to eight bids, given the pent-up demand for new ECs in the area.
Located next to Singapore Sports School, the land parcel has a maximum gross floor area (GFA) of 42,853 sq m and is expected to yield some 420 new units.
The last EC parcel awarded in the Woodlands area was in 2015 – to Hao Yuan Investment for $103.8 million or $278 psf ppr. The project, Northwave EC, was launched for sale in 2016 and has a median new sale price of $779 psf.
Senja Close bids
For the Senja Close site, CDL also beat four other bidders with its offer of $252.9 million or $771 psf ppr. This was followed by TID Residential, with a bid of $238 million or $725 psf ppr.
Oriental Pacific Development came third with a bid of $234.9 million or $716 psf ppr. Next was Wee Hur Development at $231.4 million or $705 psf ppr. The lowest bid was by a tie-up between ABR, RP Ventures and LWH, with a bid of $230.9 million or $704 psf ppr.
Consultants had expected the Senja Close site to draw two to six bids, with land rates ranging from $600 to $750 psf ppr.
Located at the Kranji Expressway, the site has a maximum GFA of 30,478 sq m, of which at least 500 sq m will be for an early childhood development centre that can take in up to 100 children.
The last EC parcel awarded in the Bukit Panjang area was in 2010 to Grand Isle, a CDL unit, for $182 million or $271 psf ppr. The project, Blossom Residences, was launched for sale later in 2011, and has a median new sale price of $704 psf, according to caveats lodged.
Prices of EC projects have trended upwards over the last few years, held up by limited supply and strong demand.
The most recent EC launch, in the west, is Otto Place by developers Hoi Hup Realty and Sunway Developments, which clinched the site for $423.4 million or $701 psf ppr in February 2024. The project sold 351, or 58.5 per cent, of its 600 units during its launch in July. The average price of its units sold under the normal payment scheme was $1,700 psf. THE BUSINESS TIMES
Source: The Straits Times © SPH Media Limited. Permission required for reproduction
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