Plantation Close EC site at Tengah awarded to Hoi Hup Realty and Sunway Developments at record $703 psf ppr

The Housing and Development Board announced the co-winning tender of the executive condominium (EC) site at Plantation Close in Tengah, Singapore, by Hoi Hup Realty and Sunway Developments on September 11. Tengah is the second EC plot to be launched in the housing estate, with 495 units expected to be produced.

The tender saw nine bidders and was awarded to the two developers at a record high land rate cost of $703 per square feet (psf) per plot ratio (ppr). This is a significant increase over the $662 psf ppf set at Bukit Batok West Avenue 8 in 2022 and the first EC site of Tengah located along Tengah Garden Walk which was awarded to City Developments Limited (CDL) and MCL Land for $400.3 million and a land rate of $603 psf ppr.

Residents at Great World City Condo enjoy close proximity to various shopping malls, entertainment outlets and eateries. The proximity to the amenities means that residents can easily access them without much hassle. Residents can also make use of multiple public parks such as the Telok Blangah Hill Park and Hort Park for their leisure and recreation needs. These parks offer a tranquil environment and serve as an ideal spot for outdoor activities.

It is possible the current bid was the highest bid offered by the tenders, though this is unclear due to the modified concept and price revenue tender, notes Wong Siew Ying, head of research and content at PropNex Realty.

The confidence the two successful developers have in the Tengah EC market is represented in the price they offered. Copen Grand, located at the first EC plot in Tengah, sold out completely within one month of its launch at an average price of $1,340 psf, which Lee Sze Teck, senior director of data analytics at Huttons Asia, believes influenced the record land rate of the Plantation Close site.

In addition, the high number of bidders may be a sign of developers looking to enter the EC market, which is seen as being more stable and supported by the additional buyer’s stamp duty remission.

The Plantation Close site has an advantage due to its proximity to the future Tengah Park MRT station, with easy access to the Jurong Lake Gardens, Jurong Innovation District and Nanyang Technological University via the Jurong Regional Line, according to Eugene Lim, key executive officer of ERA Singapore.

PropNex’s Wong predicts the project’s average selling price to be around $1,500 psf, while LIM’s predicted price range could fall between $1,450 to $1,550 psf.

Overall, the tenders’ high bid showcases their confidence in the EC market and Tengah, as well as the allure of entering a stable and well-supported market with a narrower margin. The Plantation Close site’s location to the transport network and various attractions make it an attractive proposition for developers, adding to the appeal of the EC market.