SINGAPORE (EDGEPROP) - The executive condominium (EC) site at Tampines Street 62 (Parcel B) has been awarded to Sim Lian Land and Sim Lian Development, according to an Oct 9 announcement by HDB. The entities had submitted a bid of $543.28 million for the site, which works out to $721 psf per plot ratio (psf ppr).

This smashes the record-high land rate of $703 psf ppr for an EC site that was previously set by the plot at Plantation Close, which was awarded to Hoi Hup Realty and Sunway Developments last month, notes Wong Siew Ying, head of research and content at PropNex Realty.

The tender for Tampines Street 62 (Parcel B) had closed in July, drawing bids from seven tenderers. The site measures 301,392 sq ft and can yield 700 units. The plot is located adjacent to Tenet, the 618-unit EC by Qingjian Realty, Santarli Realty and Heeton Holdings. The developers were jointly awarded the site in August 2021 for $422 million, or $659 psf ppr.

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“The Parcel B site drew healthy interest among developers as the brisk sales at Tenet last year helped to boost confidence for the plot and indicates strong demand for ECs in that area,” remarks PropNex’s Wong. Based on caveats lodged as of Oct 10, 616 of the units at Tenet have been sold at an average price of $1,382 psf.

Wong adds that the Tampines Street 62 (Parcel B) site will benefit from its location in a mature estate close to the Tampines North MRT Station, as well as the future commercial and residential project at Tampines Avenue 11.

Lee Sze Teck, senior director of data analytics at Huttons Asia, views that the record bid of $721 psf ppr for the Parcel B site illustrates the confidence Sim Lian Group has for ECs in Tampines. “Generally, EC sites in Tampines tend to have a slight premium over other locations,” he says.

Wong believes the future EC at the site could have an average selling price exceeding $1,500 psf. “With new launches in the Outside Central Region going at an average price of around $2,070 psf this year, ECs should still be a value proposition for eligible buyers even if prices hover at around $1,500 psf – which will provide opportunities for Singaporean households aspiring to live in a private home,” she continues.

While demand remains healthy for ECs, Wong notes that the strong interest among developers for such plots could continue to drive up land prices, which in turn, could impact the affordability of ECs. “The higher land prices will put upward pressure on selling prices, which will then require buyers to potentially fork out more funds upfront to buy a new EC unit in the future,” she cautions.

Transacted prices of new ECs reached a new high when Altura, the 360-unit EC in Bukit Batok West Avenue 8, clocked an average price of $1,475 psf, based on caveats lodged as of Oct 10. Last month, a 980 sq ft unit at Altura transacted at $1,585 psf, marking an all-time high for a new EC unit.

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