Buangkok Dr condo site receives cheaper bids than Sengkang

Interest was lukewarm with only five bids topped by City Development at $301m.

The tender for the residential site at Buangkok Drive/Sengkang Central continued to indicate lukewarm interest with five bids. This is similar to the tender for the condominium site at Sengkang Square/Compassvale Drive which closed on 31 May.

Notably, the top bid at $301 million (or $508 per sq ft per plot ratio) submitted by a subsidiary of City Developments Limited for the subject site, is 3.7% lower than the Sengkang Square/Compassvale Drive condominium site, which was sold for $528 per sq ft per plot ratio to EL Development.

According to Colliers International Director of Research & Advisory Chia Siew Chuin, this could be that the latter site is locationally more attractive, as it is within walking distance to Compass Point and the Sengkang MRT Station.

Nonetheless, the top three bids for the residential site at Buangkok Drive/Sengkang Central came in at narrow gaps – with the top bid being 3.7% and 5.7% above the second and third highest bids, respectively.

Ms Chia noted that at a land cost of $508 per sq ft per plot ratio, the breakeven cost based on sellable area is estimated to range from $900 per sq ft to $950 per sq ft.

"A selling price of above $1,000 per sq ft is envisaged for a new development on the site. Units at the neighbouring The Quartz were selling at a median price of $948 per sq ft from January to May this year," she said adding that  HDB residents whose flats recently turned five years might consider upgrading to units in this development, given the strong HDB resale prices in the vicinity.

Median resale prices of five-room and executive apartments in Sengkang were $512,600 and $600,000, respectively, in 1Q 2012, while resale prices of five-room flats were $523,500 in the nearby Punggol.

Ms Chia also said that the site also has several locational attributes including the proximity to the Buangkok MRT Station, as well as the presence of various primary and secondary schools, which bodes well for families with school-going children. "The site is also located just one to two MRT stations away from Compass Point and the up-and-coming Punggol New Town," she added.