Some 10 developers put in their bids for a Sengkang site at Sengkang West Avenue/ Fernvale Link. The tender which started in on 8 January 2010 closed on 4 February 2010.

The winning bid of $200.5 million was submitted by Sunmaster Holdings, a wholly owned subsidiary of City Developments Limited (CDL). The amount was 2.8 times the reserve price of $70 million.

The next highest bid was $177 million by Tuas Hi-Tech Park. The lowest bid was $115.6 million by Lippo Estates.

Li Hiaw Ho, Executive Director of CBRE Research said,” There were 10 bidders for the Sengkang West Avenue site, showing the continuing optimistic outlook by developers for the suburban private residential market. This is the first private condominium project in the Sengkang West area. The site is adjacent to Sungei Punggol with immediate access to the Layar LRT station. The top bid, at $200.5 million ($365 psf/plot ratio), is 185% above the reserve price of $70 million or $128 psf ppr. This price will likely translate into a breakeven price of about $650 psf to $700 psf for the future condominium project to be built on this site. Based on this breakeven estimate, the possible selling price could range from $750 psf to $800 psf.” 

“Recent caveats of The Quartz in Compassvale Bow range from $750 psf to $800 psf while further away, at Kovan Melody along Upper Serangoon Road, show selling prices ranging from $750 psf to $850 psf. In the HDB resale market, five-room and executive flats in Sengkang and Punggol have been selling from $400,000 to $500,000 per unit. There should be demand from HDB upgraders living in the vicinity, whose flats have just turned five years old or will turn five years old in the next few years. Demand could also come from the nearby Seletar private estate,” added Li.