Displaying the buoyancy of the residential property market, the Sengkang Executive Condominium (EC) site put up the Housing Development Board (HDB) drew some 11 bids, with the top bid coming in at $193.28 million, noticeably more than market expectations.

The top slot was jointly-bid by Opal Star and Lum Chang Building Contractors. Coming in second was MCC Land (Singapore) with $190.7 million. Hoi Hup Realty, Sunway Developments and Hoi Hup J.V. Development put in the third bid of $181.19 million.

Li Hiaw Ho, Executive Director, CBRE Research said “There were 11 bids for the Compassvale Bow site, showing the continuing optimistic outlook by developers for the suburban private residential market. In addition, the site’s locational advantage is a draw since it is within a few minutes’ walk to the Buangkok MRT station in the North-East Line. It is also just one station away from amenities at Sengkang Central which include Compass Point shopping mall, the community library and the polyclinic. The top bid of $193.28 million or $315 psf/plot ratio is only 1.4% above the next highest bid. This bid represents the highest ever for an EC site, with the previous record at $220 psf/plot ratio for Summerdale EC in May 1997. Overall, the 11 bids signal that developers are keen to build up their land banks for suburban sites.”

He added that the top bid will translate to a breakeven price of around $600 psf, which means the selling price could range from $650 psf to $680 psf.

“In the EC resale market, units in The Rivervale EC, Florida EC and Park Green EC have been sold at $520 psf - $600 psf between Oct 2009 and February 2010. Besides first-timers (especially those in the sandwich class), there should be demand from HDB upgraders living in the vicinity, whose flats have just turned or will turn five years old in the next few years. In the HDB resale market, five-room in Sengkang and Punggol have been selling from $360,000 to $450,000 per unit,” he remarked.