Location plan for the EC land parcel at Plantation Close (Source: HDB).
SINGAPORE (EDGEPROP) – Hoi Hup Realty and Sunway Developments were jointly awarded the tender for the executive condominium (EC) site at Plantation Close in Tengah, in according to a land tender results release by the Housing and Development Board on Sept 11.The site, which is the second EC plot launched within the Tengah housing estate, is expected to yield 495 units.
The tender, which saw interest from nine tenderers submitting bids, was awarded to the two developers at the tender price of $348.5 million, or a land rate of $703 psf per plot ratio (ppr). This is a record high land rate for an EC site, notes Wong Siew Ying, head of research and content at PropNex Realty. It beats the previous record of $662 psf ppf set by the EC plot at Bukit Batok West Avenue 8 which was awarded to Qingjian Realty and Santarli Construction in March 2022.
“As the Plantation Close EC plot was launched for sale via a modified concept and price revenue tender, it is unclear if this bid is the highest bid submitted by developers,” Wong adds.
The land rate is nearly 17% higher than the first EC site at Tengah, located along Tengah Garden Walk which was awarded to City Developments Limited (CDL) and MCL Land in June 2021 for $400.3 million ($603 psf ppr). The joint developers later launched Copen Grand at the site in October 2022.
Lee Sze Teck, senior director of data analytics at Huttons Asia notes that the top bid of $703 psf ppr speaks of “the confidence the successful developer has in the EC market and Tengah”.
This comes after Copen Grand was fully sold out within one month of its launch at an average price of about $1,340 psf. Tenet, an EC located along Tampines Street 62 that launched last December, also performed well, with 93% sold after the balloting for second-timers in January.
Lee adds: “With the recent increase in additional buyer’s stamp duty for a second property purchase, ECs are likely to see more interest as they are given upfront remission.”
In addition, the high number of bidders may be a move to “enter a market that is more stable and well-supported despite the narrower margins”, he says.
ERA Singapore’s key executive officer Eugene Lim notes that the Plantation Close site also appealed to developers given its proximity to the future Tengah Park MRT Station. “There will be easy access to the Jurong Lake Gardens, Jurong Innovation District and Nanyang Technological University via the Jurong Regional Line,” he remarks.
He estimates the launch price for the future EC at the Plantation Close site could fall between $1,450 to $1,550 psf. Meanwhile, PropNex’s Wong predicts that the project may have an average selling price of around $1,500 psf.