Sim Lian Land and Sim Lian Development have emerged as the triumphant bidders for the Tampines Street 62 (Parcel B) executive condominium (EC) site, as announced by the Housing and Development Board (HDB) on October 9, 2023. Their victorious bid, amounting to an impressive $543.28 million, has set a new record at $721 per square foot per plot ratio (psf ppr).
This remarkable achievement surpasses the previous record of $703 psf ppr for an EC site, which was held by the Plantation Close plot recently awarded to Hoi Hup and Sunway Developments. Wong Siew Ying at PropNex.
The competitive tender for Tampines Street 62 (Parcel B) attracted interest from seven bidders, and it boasts a substantial land area of 301,392 square feet with the potential to yield 700 units. Located in close proximity to the 618-unit EC development, Tenet by Qingjian Realty, Santarli Realty, and Heeton Holdings, it adds to the burgeoning real estate landscape in the area.
Wong from PropNex also pointed out the strong demand for ECs in this locality, driven by the brisk sales at Tenet, which saw 616 units sold at an average price of $1,382 psf as of October 10. The site’s strategic positioning near the Tampines North MRT Station and the upcoming mixed-use development at Tampines Avenue 11 adds further appeal to its potential as a prime real estate investment.
Lee Sze Teck, Senior Director of Data Analytics at Huttons Asia, highlighted that Sim Lian Group’s record bid reflects their confidence in Tampines as a location for ECs. Typically, EC sites in Tampines command a slight premium compared to other areas, making them an attractive proposition for both developers and homebuyers.
Wong’s insights also suggest that the future ECs on this site could potentially achieve an average selling price exceeding $1,500 psf, making them a viable option for Singaporean households aspiring to own a private home. However, she cautioned that the ongoing strong interest among developers for EC plots could continue to drive land prices higher, impacting the overall affordability of ECs.
Recent transactions in the EC market indicate its resilience and popularity. Altura, a 360-unit EC in Bukit Batok West Avenue 8, set a new price benchmark with an average transaction price of $1,475 psf as of October 10. Last month, a 980 sq ft unit at Altura was transacted at an all-time high of $1,585 psf, underlining the strong demand for ECs in Singapore’s property market.
As the real estate landscape continues to evolve, Sim Lian Group’s historic bid for Tampines Street 62 (Parcel B) has certainly made its mark, setting the stage for exciting developments in the EC sector and the broader property market.