Sumang Walk's EC development could yield 820 units
Since the site was sold for $509.37m, it could have a breakeven price of $1,000 psf.
Local developers CDL Constellation Pte. Ltd. and TID Residential Pte. Ltd. won against 17 bidders for Sumang Walk with a price of $509.37m, HDB said. They plan to develop the site for executive condominium housing.
According to a press release, the site has an area of 27,056.4 sqm and a maximum building height of 64 to 70 metres. The site can hold up to 820 dwelling units.
Sumang Walk has a maximum gross floor area of 81,169.2 sqm with a gross plot ratio of 3.0. The site has a 99-year leasehold.
HDB launched the land parcel at Sumang Walk for tender on 12 December 2017.
Edmund Tie & Company research head Lee Nai Jia noted that whilst the land parcel at Sumang Walk was awarded at a record price, the site has several attractive attributes. “It is within walking distance to Waterway Point and is proximate to the upcoming Punggol Digital District. There will also be a substantial rental catchment when the Digital District is up and running. Additionally, there are not many competing EC developments in the market currently.”
Lee expects the breakeven price is likely to fall between $1,000 to $1,100 psf ppr. “Whilst the winning bid is considered high relative to past launch prices, the demand for the site is expected to be supported by buyers’ positive outlook of the area. Furthermore, with prices of new private homes trending upwards, the final selling price of the future EC development will be an attractive option for investment,” he added.