A fierce bidding war is expected for an executive condominium (EC) site in Punggol that was released for sale yesterday.

A dozen or more developers could enter the race for the 99-year leasehold plot in Sumang Walk, which was released for sale under the second-half 2017 Government Land Sales (GLS) programme.

The site could yield 820 homes, the Housing Board said.

Mr Nicholas Mak, executive director of ZACD Group, noted that the number of unsold EC units has been on the decline since March due to a lack of new launches.

There is only one more EC project that has yet to be launched – Rivercove Residences in Anchorvale Lane, which has an estimated 640 to 650 units.

“As a result, there could be a looming shortage of new EC units in the primary market in the next few months,” he said.

Mr Mak expects the Sumang Walk site to be hotly contested, drawing about 10 to 18 bids, given the potential shortage of new EC units in the next 12 to 18 months.

It is also the only EC site offered for sale in the GLS programme for the whole of this year.

“A reasonable top bid in the tender for this site could range from $358 million to $385 million, or $410 to $440 per square foot per plot ratio price (psf ppr),” Mr Mak said.

“However, it would not be surprising if a very bullish developer were to submit a bid surpassing $393 million or $450 psf ppr.”

The site has an area of 27,056.4 sq m and a maximum permissible gross floor area of 81,169.2 sq m.

The tender closes at noon on Jan 30 – the same time as tenders for two other residential sites in Chong Kuo Road and Handy Road.

These were launched by the Urban Redevelopment Authority in October and November, also under the GLS programme.

Source: http://www.straitstimes.com/business/property/fierce-bidding-expected-for-ec-site-in-punggol