The Executive Condominium (EC) site at Punggol Drive / Punggol East (Punggol E2a) has drawn four bids from developers. The highest bid of $136,170,000 ($237 psf ppr) came from Qingdao Construction (Singapore). This is 2.2% higher than the second highest bid. However it is 23% lower than the price paid by ChoiceHomes Investments & CEL Development for another Executive Condominium site at Punggol Field / Punggol Road (Punggol E4) in June.

“This indicates that the supply-side measures, such as supplying more development land, implemented by the Government is having an effect of lowering land prices. This could also lead to more price competition among developers in 2011. Whether this would lead to lower home prices in 2011 will depends on whether the investment climate and economic condition then would be worse than those experienced today,” says Executive Director Nicholas Mak of SLP International Property Consultants.

Li Hiaw Ho, Executive Director, CBRE Research, says: “The quantum of bids is quite modest, which is expected for a location that is lacking in amenities and further away from the Punggol Central. The top bid of $136.17 million reflects $237 psf/plot ratio and translates to a breakeven cost above $500 psf. Units in this new EC project will possibly sell around $600 psf. In the resale market, units in Park Green, The Rivervale and The Florida were sold at $550-$650 psf between June and August 2010. With the government’s plans to develop Punggol New Town into a residential estate with mostly waterfront housing, the executive condominium project will be attractive to young couples and couples with young children.”

The site is situated at Punggol Drive/ Punggol East, on the eastern boundary of Punggol New Town. It is a short walk from Kandaloor LRT station, the third station from Punggol MRT station and bus interchange.