The executive condo (EC) site at Tampines Street 62 (Parcel B) was awarded the parcel to Sim Lian Land and Sim Lian Development in accordance with an announcement on October 9 by HDB. The two entities submitted an offer in the amount of $543.28 million to acquire the site that equates to $721 per plot ratio (psf ppr).
This is a record-breaking land price of $703 per sq ft per square foot for an EC site which was set by the plot in Plantation Close, which was granted by Hoi Hup Realty and Sunway Developments in the month of March, according to Wong Siew Ying, head of content and research for PropNex Realty.
Tenders for Tampines Street 62 (Parcel B) was closed at the end of July with bids coming from 7 prospective bidders. The site measures 313,392 square feet and could produce 700 units. The site is adjacent the site of Tenet, a six18 unit EC owned by Qingjian Realty, Santarli Realty and Heeton Holdings. The developers were given an EC site on August 20, 2021. $422 million, which is equivalent to $659 per sq ft ppr.
“The Parcel B site drew an interest from developers due to the high volume of sales at Tenet in the past year helped improve the trust in the parcel and indicate a high interest in ECs in the region,” remarks PropNex’s Wong. Based on caveats filed on October 10 616 units in Tenet were sold for an average of $1,382 per square foot.
Wong states she believes that Tampines Street 62 (Parcel B) site will benefit from its site in a mature estate that is close to Tampines North MRT Station. Tampines North MRT Station, and also the upcoming residential and commercial project on Tampines Avenue 11.
Lee Sze Teck, senior director of data analytics at Huttons Asia, views that the record bid of $721 per ppr for Parcel B Parcel B site shows the trust Sim Lian Group has for ECs located in Tampines. “Generally, EC sites in Tampines typically be a little more expensive than other places,” he says.
Wong believes that the next EC on the site could come with an average price that is more than $1,500 per square foot. “With new launches within the Outside Central Region going at an average of $2,070 per sq ft for the year ahead, ECs should still be an attractive proposition for buyers, even if prices remain at $1,500 or less and will offer an opportunity for Singaporean families who want to have a home that is their own residence,” she continues.
Although demand is still strong to purchase ECs, Wong notes that the high interest of developers for plots of this kind could keep pushing up prices for land, which, will affect the affordability of ECs. “The rising prices for land will increase pressure on the selling price, which could eventually force buyers to spend more money in advance to purchase the new EC device in the near future,” she cautions.
The price of ECs sold hit a new record at the time Altura is the 360-unit EC located in Bukit Batok West Avenue, recorded an average of $1,475 psf according to caveats that were lodged by the 10th of October. In the month of October, a 980 sq square feet unit at Altura was sold for $1,585 per square foot that was a record highest price for a brand new EC unit.