Bid for Tampines EC site breaks records

Garnering 9 bids, the expected selling price of the site could fall between $1250 to $1300 psf.

The government just closed the tender for Lentor Central and Tampines executive condo (EC) sites, both seeing fairly strong bids.

The Tampines St. 62 EC plot garnered 9 bids, an all-time high land rate for an EC government land sales (GLS) site, with 6 out of nine above the record of the $603 per square feet per plot ratio (psf ppr) land rate set by Tengah Garden Walk EC site awarded June 2021.

“The expected selling price for this Tampines EC could range between S$1,250 and S$1,300 psf. Based on URA caveats, the selling price for new ECs is inching closer to S$1,200 psf this year, such as Piermont Grand, which was sold at a median price of S$1,151 psf, Provence Residence at S$1,150 psf, Parc Central Residences at S$1,173 psf, OLA and Rivercove Residence both at S$1,143 psf. Therefore, a median selling price of above S$1,200 psf for new ECs could be breached when this plot is launched,” said OrangeTee Senior Vice President of Research & Analytics Christine Sun.

“The top bid land rate of $659 psf ppr is 14% higher than the previous EC GLS site that was awarded in the area. The last EC site sold was in Tampines Avenue 10 (Parc Central Residences EC), which was successfully tendered for $578 psf ppr ($434.5m) in January 2019,” noted PropNex CEO Ismail Gafoor.

The Lentor Central site pulled in 9 bids, with the top bid of $1,204 psf ppr. PropNex expects the selling price for future development to range between $1950 to $2,000 psf, whilst OrangeTee expects it to range between $2,000 to $2,100 psf.

“The latest tender results continue to mirror the recent trend of fairly strong land bids for GLS sites, as developers are eager to bolster their land inventory amid dwindling unsold private housing stock in the market. We believe the resilient home prices and healthy buying demand also demonstrate the strength of the housing market, and this has, in turn, boosted developers’ confidence,” Gafoor said.

“The current land bids indicate that developers remain optimistic about the future state of the Singapore property market. Land supply is low where demand continues to outstrip supply, especially in the suburban area. Therefore, the developers are expecting strong interest when the projects are launched,” concurred Sun.