27 FEBRUARY 2018
CDL Constellation and TID Residential secured Sumang Walk Land Parcel
City Development Limited (CDL) and TID Residential bid for this plot of prime executive condominium land in Punggol at S$509.37 million. This works out to a breakevevn price of S$583 PSF PPR. This is a stunning top bid for the subject parcel which is way above market expectations. Analysts are expecting the prices to be in the range of S$1,050PSF – S$1,150PSF.
Mr Ong Teck Hui, National Director for Research at JLL, said:
At $583 psf/pr, it is a stunning top bid for the subject parcel which is way above market expectations and also a record EC unit land price. This is also 64 per cent higher than the top bid of S$355 psf/pr for the Anchorvale Lane site in August 2016, which was the last EC tender.
In the absence of an EC land tender for one and a half years, an “undersupplied market” with less than 1,000 EC units unsold and a rising private residential market may have contributed to the “bullish outlook” among bidders.
There seems to be an assumption that EC prices will rise by more than 20 per cent by the time the project on the subject site is launched