Sengkang Square tender attracts few offers

The site only had five bids compared to the 12-party contest for Tuesday’s tender for the condo site at Jurong Gateway.

Here's from Colliers International:

The response for the condominium site at Sengkang Square and Compassvale Drive was relatively lukewarm with only five bids compared to the 12-party contest for Tuesday’s tender for the condominium site at Boon Lay Way (Jurong Gateway). Nevertheless, EL Development Pte Ltd put in an optimistic bid, topping the five-way tender at $383.33 million or $527.65 per sq ft per plot. This is 10.2% and 12.7% above the second and third highest bids, respectively and is 5.2% higher than the $501.76 per sq ft per plot ratio paid by Keppel Land Realty Pte Ltd for the adjacent site where The Luxurie is currently being built on.

The fewer participants for this site compared to the site at Boon Lay Way could be attributed to the ample supply of several well-located condominium sites which are scheduled for tender closing next month.

Still, the locational attributes for the site is good. It is located within walking distance to the Sengkang MRT station, and is in close proximity to several upcoming and existing commercial establishments, including Compass Point and the upcoming Waterpoint at Punggol.

A break-even cost of $950-$980 per sq ft is estimated and an envisaged selling price of above $1,100 per sq ft. Typical three-bedroom units at the adjacent The Luxurie were transacted at $920 to $1,100 per sq ft since the beginning of the year until May.
 

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