Here's proof that Singapore's executive condo market remains upbeat

Tender for Anchorvale Crescent site drew 6 bids.

According to Colliers International, the tender closing for the Executive Condominium (EC) site located on Anchorvale Crescent continued to draw healthy interests with six bids.

The winning bid at $245.6 million submitted by Qingjian Realty (South Pacific) Group Pte Ltd reflects $331 per sq ft per plot ratio, which is 3.2% and 4.4% above the second and third highest bids.

It is also 11.5% higher than the neighbouring EC site located on Sengkang West Way/Fernvale Link sold on November 2012. The healthy participation rate, as well as the robust competition among the top bids, signifies that developers are still upbeat towards the EC market.

HDB flat residents whose flats recently turned five years might be tempted to purchase an EC development on the subject site, as the strong HDB resale prices in the area would enable them to upgrade.

In 1Q 2013, 5-room HDB resale flats and executive apartments were transacted at a median price of $535,000 per unit and $628,900 per unit, respectively. While in the nearby Punggol, the median resale prices of five-room flats were $565,500 across the same period.

In addition, this project is also likely to attract professionals working in the locality, such as Seletar Aerospace Park and the nearby educational institutions.

At a land price of $331 per sq ft per plot ratio, the estimated break-even cost could range from $630-$680 per sq ft. When units at this project are ready for launch, the selling price could start from $750 per sq ft.