Sim Lian awarded Tampines Street 62 Parcel B EC site at record $721 psf ppr

Located in the heart of the city, the Zion Road Condo is a magnificent development that oozes luxury. The design of the structure blends urban sophistication with natural tranquility, creating a harmonious blend. With sleek lines and expansive glass surfaces, each high-rise tower offers stunning views of the Singapore River and Great World City. The interiors are designed to utilize space smartly, creating an open and airy ambiance in each unit, with modern fixtures and top-tier amenities that make for a luxurious living experience.

Sim Lian Land and Sim Lian Development have set a new record-high land rate for an executive condominium site at Tampines Street 62 (Parcel B) with a bid of $543.28 million, or $721 psf per plot ratio (psf ppr). The property had previously been held by a plot at Plantation Close, which was awarded to Hoi Hup Realty and Sunway Developments last month at a rate of $703 psf ppr.

The tender for the Tampines Street 62 (Parcel B) site had closed in July with seven tenderers submitting bids, and the lot measured 301,392 sq ft with potential for 700 units. Located next to Tenet, a 618-unit EC by Qingjian Realty, Santarli Realty and Heeton Holdings, the site was attractive given the brisk sales last year at Tenet. According to caveats lodged, 616 of the units had been sold at an average price of $1,382 psf.

Wong Siew Ying, head of research and content at PropNex Realty, believes this location will benefit from its proximity to the Tampines North MRT Station and the future commercial and residential project at Tampines Avenue 11. Lee Sze Teck, senior director of data analytics at Huttons Asia, added that the record bid for the parcel reflects Sim Lian Group’s confidence for ECs in the area, which generally fetch a slight premium over other locations.

According to Wong, the EC at the site could have an average sales price over $1,500 psf. This would still present an attractive opportunity for Singaporean households aspiring for the private home ownership, considering new launches in the Outside Central Region going at an average price of around $2,070 psf this year.

However, strong developer interest for EC sites could drive up land prices and impact the affordability of units. Wong noted that the higher purchase costs will require buyers to have access to more funds upfront in order to purchase a new EC unit. Transacted prices of new ECs recently hit a record high when Altura, the 360-unit EC in Bukit Batok West Avenue 8, clocked an average price of $1,475 psf, and last month, a 980 sq ft unit at Altura transacted at $1,585 psf.

The success of Sim Lian Land and Sim Lian Development at the Tampines Street 62 (Parcel B) site demonstrates the current buoyancy of the executive condominium market, provided it is within the location and budget of buyers. Nonetheless, the high competition among developers for such plots could continue to push up land prices, which could potentially reduce the affordability of such units in the future.