Hoi Hup Realty and Sunway Developments have been granted the Plantation Close EC site in Tengah at a record $703 psf ppr
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Hoi Hup Realty and Sunway Developments were jointly awarded the tender for the executive condominium (EC) site at Plantation Closing in Tengah in accordance with a report on the results of a land auction released from the Housing and Development Board on September 11.The site, which is the second EC plot that was launched in the Tengah housing estate is expected to generate 495 units.
This tender that received interested bids from nine tenderers that submitted bids, was granted to two developers at a tender price that was $348.5 million, which is an average land value of $703 psf/plot proportion (ppr). This is an all-time record land value on an EC site as per Wong Siew Ying, head of content and research of research and content at PropNex Realty. This is higher than an earlier record, which was $662 per in ppf, that was set in the EC plot in Bukit Batok West Avenue, which was granted the property to Qingjian Realty and Santarli Construction in March 2022.
“As this Plantation Close EC plot was offered for sale through an amended idea and price-revenue tender it’s not clear if this bid is the highest that was submitted from developers,” Wong adds.
The land price is almost 17% higher than the initial EC site located at Tengah which is located in the Tengah Garden Walk which was granted the land to City Developments Limited (CDL) and MCL Land in June 2021 for $400.3 million ($603 psf per ppr). The two developers then opened Copen Grand on the site in the month of October 2022.
Lee Sze Teck, senior director of data analytics at Huttons Asia notes that the highest bid of $703 per person speaks of “the faith that this successful developer can have on his/her EC marketplace and Tengah”.
This follows Copen Grand was fully sold within a month of its opening at an average of around $1,340 per sq ft. Tenet Tenet, an EC located on Tampines Street 62 that launched in December last year, performed well, selling the tally of 93% sold following the second-time voter balloting in January.
Lee says: “With the recent increase in stamp duty for buyers who are paying more for the second property acquisition, ECs are likely to be more popular because they’re getting an the opportunity to receive a remission in advance.”
Additionally, the large quantity of bidders could indicate an attempt to “enter the market that is robust and stable despite smaller margins” He adds.
The ERA Singapore’s chief executive officer Eugene Lim notes that the Plantation Close site also appealed to developers due to that it is close to planned Tengah Park MRT Station. “There is easily accessible into Jurong Lake Gardens, the Jurong Lake Gardens Jurong Innovation District along with Nanyang Technological University via the Jurong Regional Line,” he says.
He estimates that the launch price for the new EC located at Plantation Close. Plantation Close site could fall between $1,450 and $1,550 per square foot. Additionally PropNex’s Wong believes that the project will likely be sold at an average cost of about $1,500 per sq ft.