Sim Lian Group submitted the top bid of $465 million for a 241,982 sq ft Executive Condominium (EC) site at Tampines Street 95. The bid translates to $768 psf per plot ratio (ppr) and has set a new record land rate for ECs.
It surpassed the previous $729 psf ppr high set in August when a Qingjian Realty-led consortium was awarded an EC site at Jalan Loyang Besar.
The EC site at Tampines Street 95 was launched on August 22 under the Confirmed List of the 2H2024 government land sales (GLS) programme. The site has a gross plot ratio of 2.5, and the new development is expected to yield about 560 EC units.
The tender closed on Oct 24 and saw five different bids. According to a media announcement by HDB on Oct 24, a decision on the award of the tender will be announced later.
A joint venture comprising Santarli Realty, Apex Asia, Kay Lim Holdings, and Heeton Holdings submitted the second-highest bid of $457.52 million, translating to a land rate of $756 psf ppr. The Sim Lian offer narrowly outpaced the JV by just 1.6%.
“The narrow margin between bids suggests that developers are carefully balancing their optimism about future market conditions with the need to remain prudent in their financial commitments,” says Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc (SRI).
Other bids came from Sing Holdings, which put in a bid of $439.55 million ($726 psf ppr), CSC Land Group, which submitted $438.76 million ($725 psf ppr), and a JV between Hong Leong Holdings and TID, which put in a $425.7 million bid ($703 psf ppr).
Table: HDB
According to Mark Yip, CEO of Huttons Asia, EC sites in Tampines usually see strong participation and bids from developers as the EC projects in this area are able to achieve good sales on launch day, he says.
He cites the recent sales performance of Tenet, an EC project at Tampines Street 62, which sold 447 out of 618 units in Dec 2022, while Parc Central Residences at Tampines St 86 sold 414 out of 700 units in Jan 2021.
Sim Lian is familiar with the Tampines region, having developed the 2,203-unit private condo Treasure at Tampines and the 670-unit The Tampines Trilliant (EC). They have an upcoming EC, the 760-unit Aurelle of Tampines at Tampines St 62, that is scheduled for launch next year, says Yip of Huttons.
Details of the site as shown on EdgeProp’s Landlens tool. (Map: EdgeProp Singapore)
The new EC project at Tampines St 95 should benefit from its proximity to Tampines West MRT station on the Downtown Line and an upcoming mixed-use project diagonally across the road at Tampines St 94. This site was awarded to a Hoi Hup-Sunway JV on Oct 11.
“Tampines has seen several BTO launches in the past few years and has a large pool of potential upgraders looking to upgrade to an EC,” according to Yip. The site is also within 1km of Red Swastika School and St Hilda’s Primary School, which will be sought-after by families with children of school-going age.
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