The Housing Development Board (HDB) has launched an Executive Condominium (EC) residential site at Canberra Link for sale by public tender on 16 May. This 99-year leasehold site – spanning 16,690 sq m – can build up to 38,387 sq m gross floor area (GFA) and potentially yield up to 635 residential units, according to the HDB.
We expect the site to potentially attract 5-8 bids, fewer than the nine bids we saw at the adjacent EC site that was tendered and awarded on 10 September 2018, but in line with the seven bids we saw at the most recent EC sites tendered at Anchorvale Crescent (Sep 2018, 7 bids) and Tampines Avenue 10 (January 2019, 7 bids).
We estimate the top bid could potentially come in at SGD215 million or SGD521 per square foot per plot ratio (psf ppr). This could put potential average selling price at SGD950 psf.
The site next door, which is nearer to Canberra MRT station and can yield 450 units, was awarded to Hoi Hup/ Sunway JV at SGD558 psf ppr in September 2018. We expect developers to exercise a bit more prudence on this site given the short time gap between these two neighboring projects, notwithstanding the five-year ABSD timeline.
This will be the 11th EC within this district (District 27). The newest ECs in the district - Parc Life and The Visionaire both launched in April 2016 at a median price of SGD784-821 psf. There are no recent new private launches, but newer nearby private homes – The Nautical (completed 2015), Canberra Residences (2013), Eight Courtyards (2014) have transacted at an average of SGD900-1,000 psf in 2019 to date.
The tender will close on 3 July, batched with the Clementi Avenue 1 private residential site launched in February.