Tender for the Government Land Sales closed on 3 March 2020 and saw a total of 16 bids for the three residential sites, of which one is an executive condominium (EC) site. All three sites are located in the Outside of Central Region (OCR). The EC site is at Fernvale Lane while the two residential sites are at Canberra Drive.
Response to the three sites shows that developers are still keen on landbanking despite the current uncertainties in the market. The bids seemed to reflect that developers' outlook on prices would be stable for the next 12 months.
Oasis Development Pte Ltd bagged Parcel A at Canberra Drive with a bid price of S$129 mil, which reflects a land rate of $644 psf ppr. The other bigger land parcel at the same area was taken by United Venture Development at S$270 mil or S$650 psf ppr.
Both sites will yield an estimate of 675 units. Taking into consideration the break-even price, the new private residential project is expected to be launched in a year's time at S$1,350 psf. The site is within walking distance to Canberra MRT Station. By comparison, The Essence at Chong Guo Road was launched at S$1,350 psf a year ago and is currently around 30% sold.
Photo credit: Land Transport Authority