SINGAPORE (EDGEPROP) - An executive condo (EC) development site at Bukit Batok West Ave 8 was launched for sale by tender today. This is the first government land sale (GLS) site to be launched after the introduction of the latest property cooling measures on Dec 15, notes Nicholas Mak, head of research at ERA Realty. “It is also the last GLS site to be launched for sale this year,” he adds. (Discover insightful data of any Singapore condominium with our condo directory)

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Interest from developers for this EC site is anticipated to be “moderately high”. “This is because the EC property market is expected to be less affected by the recent round of cooling measures,” Mak explains. “Practically all the buyers of the new EC units are either first-time homebuyers or HDB upgraders. Furthermore, buyers must adhere to the HDB regulations to form household units, and the large majority of the buyers are Singaporean households.” In his view, few EC buyers will be affected by the hike in additional buyer’s stamp duty (ABSD) for those buying their second, third or subsequent properties. (Find HDB flats for rent or sale with our Singapore HDB directory)

The site area of 134,004 sq ft can be developed into a new EC of about 375 units. It falls within the preferred range for development projects, which is generally between 100 to 500 units, notes Mak. Such a size will allow developers to enjoy economies of scale, and at the same time, not too large that there’s a high risk of difficulties in selling all the units within the five-year ABSD deadline, he adds.

Mak reckons the tender could attract about six to 10 bids, with the top bid expected to be in the range of $209 million to $233 million, or $520 to $580 psf per plot ratio.

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