The tender has closed for the Executive Condominium site at Tampines Ave 10. The 268,384 sq ft site attracted seven bids, says HDB. The future development could comprise up to 695 units and will have a maximum Gross Floor Area of 751,482 sq ft.

The highest bid came from Hoi Hup Realty and Sunway Developments, a subsidiary of Malaysian group Sunway Berhad. The two companies jointly submitted a bid of $434.45 million for the site, or $578 psf/per plot ratio (ppr). The second highest bid came from Chinese developer MCC Land, which submitted a bid of $431.62 million ($574.36 psf/ppr). This is a 0.7% margin between the top two bids.

The top bid is in line with last years’ winning EC tenders at Sumang Walk ($583 psf ppr), Canberra Link ($558 psf ppr), and Anchorvale Crescent ($576 psf ppr), says Ong Teck hui, senior director of research and consultancy at JLL. It is also higher than the $565 psf ppr City Developments Ltd paid for the condominium site where The Tapestry is being developed. The condo is 200m away from the EC site on Tampines Ave 10.

The overall lack of supply of EC units in the market has caused prices to increase by 24.7%, from $793 psf in 4Q2017 to $989 psf ppr last quarter, says Ong. Last year recorded 1,137 EC units sold against 628 units launched at Rivercove Residences, the only EC launch last year, and which saw prices breaching $1,000 psf as of end-2018, says Desmond Sim, head of research at CBRE. This sets a good price precedent for the upcoming EC launch at Sumang Walk, he says.

That EC site was awarded to City Developments Ltd and joint venture partner TID, itself a joint-venture company owned by Hong Leong Group and Japanese developer Mitsui Fudosan, after they beat out 16 others with a top bid of $509.37 million ($583 psf per plot ratio). It also set a record price in the EC land sales market, says ZACD group executive director Nicholas Mak, at the time of the tender award.

Today, CDL and TID submitted the third highest bid of $414.29 million ($551.29 psf/GFA) for the Tampines Ave 10 site. Other developers who also submitted bids include Qingjian Realty and boutique developer Evia Real Estate, Sim Lian Group, a consortium comprising Amara Holdings, Santarli Venture, and Kay Lim Holdings, as well as boutique developer JBE Holdings.

The ‘robust bidding’ from developers comes on the back of latent demand for EC units in the market and scarcity of EC development sites in mature residential estates, says Lee Sze Teck, head of research for Hutton Asia. Developers were also attracted to the relatively large and regular size of the site which is surrounded by schools and amenities, says CBRE’s Sim.