SINGAPORE – The Housing Board has released an executive condominium (EC) site in Tengah for sale under the Government Land Sales (GLS) programme.
A site in Tampines Street 95 was also made available for application under the reserve list, HDB said on Nov 30. This means it will be put up for tender if a developer has submitted an application that meets the Government’s minimum price for the site.
Each site can yield about 560 units.
Owing to the popularity of ECs, analysts expect the 20,038.2 sq m Tengah site located in Plantation Close to receive strong interest and at least five bids from developers.
Mr Eugene Lim, key executive officer at real estate firm ERA Singapore, noted that four EC sites in Bukit Batok and Tengah have attracted about seven bidders per site on average since 2021.
However, market watchers do not expect bids will exceed the record $721 per sq ft per plot ratio bid that won Sim Lian Land and Sim Lian Development a Tampines Street 62 EC site in October, which is in a more established and mature neighbourhood.
Located at the southern tip of Tengah, at the intersection of Bukit Batok Road and the Pan-Island Expressway, the site has a maximum gross floor area of 56,107 sq m.
It is the third EC project in Tengah. The winning bids for the first two EC plots had also set new records in their time.
The first, Copen Grand in Tengah Garden Walk, launched units for sale in October 2022. Its developer Taurus Properties SG – a wholly owned subsidiary of City Developments Limited and joint venture partner MCL Land – had bid $400.32 million – or $603 per sq ft per plot ratio.
The second, also in Plantation Close, was awarded to a joint venture comprising Hoi Hup Realty and Sunway Developments in September for $703 per sq ft per plot ratio – the previous price record for an EC site.
The latest site will be about 250m from an MRT station – tentatively named Bukit Batok West – on the Jurong Region Line that is slated to open in 2028.
Analysts noted that the site is not far from Jurong Lake District and Jurong Lake Gardens, which offer employment and recreational opportunities. Schools near the site include Jurong Primary School, Princess Elizabeth Primary School, Bukit Batok Secondary School and Millennia Institute.
Ms Wong Siew Ying, head of research and content at real estate firm PropNex, said developers tend to be keen on EC projects as they pose lower development risks than other private residential projects.
“This is because the buying demand for new ECs among owner-occupiers is usually robust, garnering healthy take-up rates for EC projects when they are launched,” she said, noting that there is a limited supply of unsold EC units on the market, with about 300 units available as at end-October.
Mr Justin Quek, deputy chief executive of property firm OrangeTee & Tie, said ECs remain one of the most affordable options for those who wish to live in private homes.
New ECs will remain especially popular among HDB flat owners looking to upgrade, as they do not have to pay additional buyer’s stamp duty upfront, compared with when they buy new or resale private properties, he said.
Meanwhile, the Tampines Street 95 site that was open for application has an area of about 2.2ha and a maximum gross floor area of 56,230 sq m.
It is about a 550m walk from Tampines West MRT station, and has nearby amenities such as Safra Tampines and Tampines Round Market and Food Centre.
Mr Lee Sze Teck, senior director of data analytics at property firm Huttons, said developers may wait for the list of GLS sites for the first half of 2024 to be announced – tentatively in December – before placing a bid for the Tampines site.
Ms Wong of PropNex expects the site’s sale to be triggered, given the robust demand for ECs among buyers and strong bids from developers.
“EC sites have always been seen as somewhat of a safe haven equivalent in the GLS tenders, and developers who have lost out on securing EC sites in recent tenders may apply for this plot to be launched for sale,” she added.
