Clementi Avenue 1
This is the first tender site one year after the increase of the ABSD for residential land. Bidding remains competitive, with a total of 5 bidders. The winning bid of S$491.30 million (S$788 psf ppr) remains a palatable amount. Bidding sentiments for this site may be encouraged by UOL-UIC’s complete sell-out of The Clement Canopy which is a stone’s throw away, as well as the continual need for land bank shoring. The requirements of utilising PPVC on this development is in line with the developer’s expertise, as their current project (Avenue South Residence) as well as The Clement Canopy both adopt this construction method.
Canberra Link (EC site)
The EC site along Canberra Link attracted a total of 8 bidders. It seems to be a highly competitive bid, albeit cautious, with the winning bid of S$566 psf ppr by MCC Land edging the second closest bidder by 0.2%.
As of Q1 2019, there are 1,871 approved EC units unsold which may be launched by this year; mainly from projects like Piermont Grand, as well as two un-named projects at Anchorvale Crescent and Canberra Link. This excludes Tampines Avenue 10 which was just awarded in January 2019 which may yield an additional 695 units.
This impending stock might be a dampener for some developers as they may have to take into account the ABSD of 30% in their final bid price. In addition, EC demand is also governed by strict mortgage service ratio (MSR) ruling as well as HDB qualifying requirements. There is a perceived glass ceiling to the affordability of each unit.
The relative success of their recent projects Northwave (EC), Queens Peak and the Alps Residences has encouraged MCC Land to replenish their land bank.
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