Canberra Drive EC land site attracts 6 bids

A land site for an executive condominium (EC) development at Canberra Drive has attracted six bids at the close of tender on Tuesday.

According to the Housing and Development Board (HDB), City Developments unit Verwood Holdings and its joint venture partner TID Residential has submitted the highest bid for S$226 million.

That works out to about S$350 per square foot, per plot ratio (psf ppr).

The top bid is about 4 per cent higher than the second highest bid of S$216.5 million put in by MCL Land.

Meanwhile, the lowest bid is from CEL Residential Development at S$168.38 million, or S$253 psf ppr.

Some 600 home units are expected to be built on the 28,562.5 square metres site located in Sembawang New Town.

Nicholas Mak, research head at SLP International, said: “This bid does not indicate developers are bullish, but fairly reasonable, giving developers more room to lower the price as property prices are expected to further soften.”

Some analysts also pointed out that the tender for the site did not attract as many bidders as the land site at nearby Westwood Avenue.

Instead, they added that the bids came mainly from seasoned players looking to replenish their land bank.

CBRE Research Singapore’s Head Desmond Sim said: “Developers are more realistic, bearing in mind the new credit restrictions imposed on EC buyers, which can only be made up of Singaporeans.

A City Developments spokesman said in a statement that in the event that they are awarded the site, CDL will explore a mid-rise EC development of between 10 to 11 storeys with approximately 660 units.

It will also be City Development’s seventh EC project.

The HDB said that the award of the tender will be announced at a later date after all bids have been evaluated.

Source : Channel NewsAsia – 28 Jan 2014