‘Tender for EC site at Tengahs Plantation Close and Tampines St 95 launched; applications open for EC sites at Tengahs Plantation Close and Tampines St 95

HDB has launched two executive condo (EC) sites for sale, one at the Tengah’s Plantation Close under the Confirmed List of the 2H2023 Government Land Sales (GLS) programme and the other Tampines Street 95 falls under the Reserve List of the same progamme. Tengah EC site at Plantation Close with 215,609 sq ft is expected to yield 560 new residential units with proximity to the upcoming Tengah MRT Station on the Jurong Region Line and the master planned Jurong Lake District.

Currently, market research from Huttons Asia indicates that there are fewer than 300 unsold EC units available in the market, so the tender for the Plantation Close could attract six to eight bids, with the top bid potentially ranging from $417 million to $429 million — translating to a land rate of $690 psf ppr to $$710 psf ppr.

The other EC site situated in Tengah, at Plantation Loop, was jointly awarded to Hoi Hup Realty and Sunway Developments with the top bid of $348.5 million. However, the record bid for an EC site was $721 psf ppr when Sim Lian Land and Sim Lian Development submitted an eye-watering $543.28 million for an EC site at Tampines Street 62 back in October.

Justin Quek, deputy CEO of OrangeTee&Tie, expects that most developers will be inspired by the strong take-up rates at nearby ECs such as Copen Grand along Tengah Garden Walk and Altura at Bukit Batok West Ave 8. Despite the gaps in the EC launches, Quek believes that the EC sites in the vicinity will reduce developers’ apprehensions.

On the other hand, the tender for the Tampines Street 95 EC site will only be activated if a developer submits an acceptable minimum price to the government. The 242,014 sq ft site is close to Tampines West MRT Station on the Downtown Line and Temasek Polytechnic, with potential to yield 560 EC units.

Lee Sze Teck, senior director of data analytics at Huttons Asia, opines that developers may wait for the list of sites in the 1H2024 GLS before deciding whether to trigger this reserve list site.

The current data published by PropNex Realty reveals that GLS EC tender land rates have been steadily climbing since 2016, with the median unit price of ECs breaching the $1,000-psf mark in 2Q2019. Data also suggests that the latest EC site at Plantation Close cannot break the record land rate set at Tampines St 62. EdgeProp also estimates that if the GLS site is awarded at $429 million, the new development could have a selling price of at least $933 psf.

Overall, Eugene Lim, key executive officer of ERA Realty, believes that there will be intense competition among developers for the two EC sites at Tengah. Despite the rising land rate, Lim believes that the pool of potential upgraders looking to move to an EC could be a factor for potential success.

HDB has launched two executive condo (EC) sites for sale in Tengah, one at Plantation Close under the Confirmed List and the other at Tampines Street 95 falls under the Reserve List of the 2H2023 Government Land Sales (GLS) programme.

Data from PropNex Realty suggests that GLS EC tender land rates have been steadily increasing since 2016 and the median unit price of ECs breaching the $1,000-psf mark in 2Q2019. The record bid for an EC site to date is $721 psf ppr at Tampines Street 62. Market research from Huttons Asia indicates that there are fewer than 300 unsold EC units in the market.

The Tengah EC site at Plantation Close is expected to yield 560 new residential units and is located close to the future Tengah MRT Station on the Jurong Region Line and the master planned Jurong Lake District. The tender for the Plantation Close EC site has the potential to attract six to eight bids under the top bid range of $417 million to $429 million — translating to a land rate of $690 psf ppr to $$710 psf ppr.

The tender for the other EC site at Tampines Street 95 will only be activated when a developer submits an acceptable minimum price to the government. This 242,014 sq ft site is close to Tampines West MRT Station and Temasek Polytechnic and could yield 560 new EC units. Lee Sze Teck, senior director of data analytics at Huttons Asia opines that developers may wait for the list of sites in the 1H2024 GLS programme before deciding whether to trigger this reserve list site.

EdgeProp estimates that if the GLS site at Plantation Close is awarded at $429 million, the new Tengah EC development could have a selling price of at least $933 psf. Justin Quek, deputy CEO of OrangeTee&Tie expects that most developers will be emboldened by the strong take-up rates at nearby ECs. Eugene Lim, key executive officer of ERA Realty, anticipates “intense competition” among developers for the two EC sites in Tengah.

Tengah EC is conveniently located in the Bukit Panjang area, allowing residents to easily access the Central Business District and other parts of Singapore. The development is close to a number of shopping malls, restaurants, and other recreational amenities. Moreover, Tengah EC Executive Condo also offers excellent security and 24-hour concierge service. Its luxurious facilities include a swimming pool, clubhouse, and an indoor gym. In short, Tengah EC Executive Condo provides a luxurious living experience for its residents in Singapore.

With the rising land rate, Wong Siew Ying, head of research and content at PropNex, firmly believes that the Plantation Close EC site cannot rewrite the record land rate set by the Tampines St 62 (Parcel B) plot. The tender for the Plantation Close EC site will close on Feb 1, 2024 and should there be a good response, Tengah EC could be a success.