Frasers Centrepoint bags EC site in Sembawang Avenue for $214m

SINGAPORE - An executive condominium (EC) site in Sembawang Avenue fetched four bids on Thursday.

A considerable supply of upcoming EC units in the vicinity could have led to the "low participation" in the tender, said market watchers who had expected moderate interest from developers when the site was rolled out on the confirmed list in May.

The tender fetched a top bid of $214 million from Frasers Centrepoint's FCL Tampines Court and Keong Hong Construction's KH Capital - which works out to $320 per sq ft (psf) per plot ratio (ppr) for the 238,848 sq ft plot.

This narrowly edged out the second-highest bid of $211 million, or $315 psf ppr, from City Developments' Verwood Holdings and TID Residential.

Mr Ong Teck Hui, national director of research and consultancy at Jones Lang LaSalle, said: "In the immediate vicinity, Skypark Residences still had 205 units unsold... while the Canberra Drive site which was sold in January could generate some 600 units when launched."

Two more EC plots in Yishun Street 51 that were sold in May will add another 1,200 units, noted Mr Ong.

The land parcel is also next to the site of Skypark Residences, also an EC project, which fetched a winning bid of $324 psf ppr in December 2012.

However, Mr Eugene Lim, key executive officer of ERA Realty, noted that ECs remain a popular option with Housing Board (HDB) upgraders, and the project is likely to gather interest from those living in nearby HDB flats.

Executive condominiums are sold with rules imposed by the HDB, but are built by private developers.