SINGAPORE (EDGEPROP) - The Government Land Sale (GLS) tender for the executive condominium (EC) site at Tampines Street 62 (Parcel B), which closed on July 18, saw seven tenderers submitting bids, including four that submitted an alternative proposal.

This is the second site to use a modified concept and price revenue tender system, following the tender for the EC site at Plantation Close which closed on June 27.

Under this system, developers can submit a standard bid using prefabricated prefinished volumetric construction (PPVC) technology that will automatically qualify for tender evaluation. They may also submit an alternative bid using other construction methods, as long as the technology used can result in specified productivity improvement.

Alternative bids will be assessed by a Concept Evaluation Committee chaired by the Building Construction Authority to determine whether they qualify for tender evaluation. According to HDB, a decision on the award of the tender will be announced at a later date after all the tenders have been evaluated.

The Tampines Street 62 (Parcel B) site measures 301,392 sq ft. It can yield 700 units, with a gross plot ratio of 2.5 or a maximum GFA of 753,484 sq ft.

Chia Siew Chuin, head of residential research, research & consultancy at JLL says the keen competition for the Tampines St 62 (Parcel B) site underscores the high demand for ECs in Tampines.

The plot is located adjacent to Tenet, the 618-unit EC by Qingjian Realty, Santarli Realty and Heeton Holdings which has seen some 614 units (99%) taken up at a median price of $1,386 psf since its launch last December based on caveats lodged. “The strong demand for units at Tenet can potentially spill over to the new EC on the current site,” adds Chia.

Tricia Song, head of research, Southeast Asia at CBRE, highlights that the number of bids received is in line with other recent EC sites, pointing to developers’ continued preference for ECs which are generally not as affected by the recent property cooling measures.

This includes the site at Bukit Batok West Avenue 9 which received nine bids and was awarded in March 2022 for $266 million or $662 psf per plot ratio (psf ppr). The site for Tenet, which also drew nine bids, was awarded to Qingjian Realty and Santarli Construction in July 2021 after they submitted a top bid of $422 million (a record $659 psf ppr). Last month, the Plantation Close EC received nine bids, with two tenderers submitting an alternative proposal.

Song believes the Tampines Street 62 (Parcel B) site could receive a top bid between $650 to $700 psf ppr, with a target launch price of $1,400 psf.

Wong Siew Ying, head of research and content at PropNex Realty, predicts a similar range for the top bid, noting that developers remain keen on EC sites and may be looking to tap on the sizeable pool of HDB upgraders in and around Tampines.

She adds that the site is also near the Tampines Avenue 11 mixed-use GLS plot that is slated for an integrated development, with a bus interchange, community club and hawker centre. It will also be connected to the upcoming Tampines North MRT station on the Cross Island Line, further bolstering its appeal among buyers.

Check out the latest listings near Tenet, Tampines North MRT station