Two govt land sale sites draw keen interest from bidders

Government land sales for first half 2020 at two residential land parcels closed yesterday.

The first site is at Tanah Merah Kechil Link. It is doorstep to Tanah Merah MRT, with commercial use on 1st storey.
This land site can potentially yield about 250 apartments and 2000 sq. metre of commercial space.

A first release of government land sales since Covid-19 pandemic began, it attracted a highly contested bid from 15 developers which are generally above expectations.

Tanah Merah Kechil Link land site

Highest bid came from MCC Land at $248.99m, translating to $930 per sq. ft per plot ratio (psf ppr).

Should MCC Land be awarded, they are expected to sell at $1700 psf to $1800 psf. According to market expert, this price “is bullish as new units in this area are trading between $1500 psf and $1600 psf.”

Yishun EC land site

For the second land site at Yishun Avenue 9 (Yishun EC), it will be developed as an executive condominium, requiring potential buyers to satisfy HDB eligibility criteria for the purchase.

Sing Holdings is the top bidder for Yishun EC at $373.5m (or a land rate of $576 psf ppr), out of total of seven bids received by HDB.

With close proximity to Junction 9, a new mall, Yishun EC could yield about 600 homes.

ERA Realty’s head of research and consultancy Nicholas Mak noted that the top bid for the Yishun EC site “shows that the developer is quite confident as the land rate is higher than the two EC sites launched for sale in 2019”.

“At the land rate of $576 psf ppr, the estimated break-even cost is about $1,000 psf to $1,050 psf. The developer probably plans to launch new units at prices above $1,100 psf,” he added.

Symphony Suites a better buy?

Sitting next to Yishun EC is a newly completed private condominium, Symphony Suites.

With no eligibility criteria to satisfy and is ready for you to move-in, home buyers can consider a purchase here instead of waiting for Yishun EC to be launched after 15 months, and thereafter, a construction period of about 3 years.

Current asking prices in property website are from $1100 psf to $1355 psf for Symphony Suites, and I’m marketing a ground floor 689 sqft 2-bedroom apartment at $800,000 ($1161 psf).

Interested in private residential homes?

Call Poh Lin at tel no. 96700937 or submit this Contact form on your enquiries on home purchase or to receive full project information on any private residential new launches.

For the full Straits Times article, please click here.

For more information on Symphony Suites, please click here.