Hoi Hup Realty and Sunway Developments have emerged as the successful bidders for the executive condominium (EC) site located at Plantation Close in Tengah. This outcome was confirmed by the Housing and Development Board’s land tender results release on September 11th.
The site, being the second executive condominium (EC) plot introduced in the Tengah housing estate, is anticipated to generate a total of 495 residential units.
The competitive tender process attracted significant interest, with a total of nine tenderers submitting their bids. Ultimately, the tender was successfully awarded to two esteemed developers at a price of $348.5 million, reflecting a land rate of $703 per square foot per plot ratio (ppr).
According to Wong Siew Ying, the esteemed head of research and content at PropNex Realty, it is worth highlighting that the land rate for an Executive Condominium (EC) site has reached an unprecedented peak.
The current achievement surpasses the previous milestone of $662 per square foot per plot ratio (psf ppf) established by the executive condominium (EC) site located at Bukit Batok West Avenue 8.
This notable record was attained when Qingjian Realty and Santarli Construction secured the development rights in March 2022.
According to Wong, the launch of the Plantation Close EC plot for sale through a modified concept and price revenue tender raises questions about whether this bid represents the highest offer put forth by developers.
The Plantation Close Executive Condominium (EC) site has garnered significant attention from the market, as evidenced by the impressive number of nine tenderers who have submitted their bids. This level of interest indicates a strong demand for this particular development opportunity.
The competitive nature of the bidding process suggests that developers recognize the potential value and attractiveness of the Plantation Close EC site. It is likely that these tenderers have conducted thorough market research and analysis, identifying the site as a promising investment opportunity.
The high number of bids received also indicates a healthy level of competition among developers, which could potentially lead to a more favorable outcome for the government
The land rate for the aforementioned site, situated along Tengah Garden Walk, exhibits a notable increase of approximately 17% compared to the initial EC site at Tengah. It is noteworthy that the aforementioned site was successfully secured by City Developments Limited (CDL) and MCL Land in June 2021, following a competitive bidding process, with a substantial winning bid of $400.3 million ($603 per square foot per plot ratio).
In October 2022, the esteemed joint developers successfully unveiled Copen Grand, their latest project at the site.
According to Lee Sze Teck, a senior director of data analytics at Huttons Asia, the noteworthy bid of $703 per square foot per plot ratio (psf ppr) indicates the strong belief that the victorious developer holds in both the executive condominium (EC) market and the Tengah area.
The remarkable success of Copen Grand is evident as it achieved full sell-out within a mere month of its initial launch, with an impressive average price of approximately $1,340 per square foot. Tenet, an executive condominium strategically situated along the highly sought-after Tampines Street 62, has exhibited commendable market performance since its launch in December. Notably, the development achieved an impressive sales rate of 93% following the successful balloting for second-time buyers in January.
Given the recent implementation of heightened buyer’s stamp duty for second property acquisitions, it is expected that there will be a surge in interest towards Executive Condominiums (ECs) due to the advantageous upfront remission they offer.
Furthermore, the substantial influx of interested parties could potentially be interpreted as a strategic maneuver to penetrate a real estate market that exhibits enhanced stability and robust backing, even in light of the relatively narrower profit margins that may be at play.
According to Eugene Lim, the key executive officer of ERA Singapore, developers were particularly drawn to the Plantation Close site due to its advantageous location near the upcoming Tengah Park MRT Station.
The proximity to Jurong Lake Gardens, Jurong Innovation District, and Nanyang Technological University, facilitated by the Jurong Regional Line, will undoubtedly enhance the accessibility of this location.
Based on his analysis, the projected launch price for the upcoming executive condominium (EC) at the Plantation Close location is anticipated to range from $1,450 to $1,550 per square foot (psf). According to PropNex’s esteemed analyst, Wong, it is anticipated that the project in question may potentially command an average selling price of approximately $1,500 per square foot (psf).
