A 99-year leasehold site for executive condominium (EC) housing development at Anchorvale Crescent has been triggered for launch from the reserve list of the Government Land Sales (GLS) programme.
This follows a successful application by an unnamed developer to bid at least $255 million for the site at tender. This works out to nearly $461 per square foot per plot ratio (psf ppr).
The 1.71ha site can be developed into a maximum of 550 residential units. ECs are a public-private housing hybrid.
“As the minimum price committed by the developer is acceptable to the Government, the site will be released for sale by public tender,” the Housing Board (HDB), acting as state land sales agent for this site, said in a statement yesterday evening.
The Anchorvale Crescent site is near Cheng Lim LRT station and Sengkang MRT station. It is also close to amenities such as Sengkang General Hospital, Sengkang Community Club and Compass One Mall.
HDB will launch the public tender for the site in about three weeks. The tender period for the land parcel will be about five weeks.
The land parcel was first made available for sale on the reserve list of the first half 2018 GLS programme on June 28.
A site on the reserve list is triggered for launch if a developer’s indicated minimum price in its application is acceptable to the state or there is sufficient market interest in the site.
Under the procedures for the reserve list system, the state then makes public the minimum price committed for the site by the successful applicant but does not reveal the identity of the applicant.
ZACD Group executive director Nicholas Mak noted that the Anchorvale Crescent site was made available for application only about a month ago.
He said: “A developer has successfully applied to the Government to have this site launched for sale by tender while it is still fresh on the shelf. This could indicate that some developers think that in the light of the latest government intervention in the property market on July 5, EC units will probably still enjoy strong demand.”
He also noted that as buyers of new EC units are not allowed to own any other residential properties, they will not be subject to the Additional Buyer’s Stamp Duty.
“Furthermore, due to the strong buying demand and shortage of EC units in the past year, an EC project may be considered a “safer bet” than private housing among some developers,” Mr Mak added.
Huttons Asia head of research Lee Sze Teck said: “The trigger price of $461 psf ppr for the Anchorvale Crescent site speaks volumes of developers’ confidence in the EC market.” As at the end of last month, only 45 EC units remained unsold in launched projects, he added.
Mr Mak expects the tender for the Anchorvale Crescent site to draw 11 to 18 bids with the highest bid coming in at $257 million to $305 million (about $465 psf ppr to $551 psf ppr).
“Due to the limited supply of EC sites and recent brisk sales at Rivercove Residences, which was the latest EC project launch, this tender could draw strong interest from many developers,” he added.