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

The Housing and Development Board (HDB) recently announced results for the land tender for the executive condominium (EC) site at Plantation Close in Tengah. Joint developers Hoi Hup Realty and Sunway Developments won the tender at a record high land rate of $703 psf per plot ratio (ppr). The record was previously held by the EC plot at Bukit Batok West Avenue 8 in March 2022 with a land rate of $662 psf ppf.

The site, which will yield 495 units, was launched for sale in a modified concept and price revenue tender. This drew in nine tenderers with their bids. Wong Siew Ying, head of research and content at PropNex Realty, is unaware if the bid submitted by the two developers was the highest.

The top bid is an indicator of the confidence the winning developer has in the EC market and Tengah according to Lee Sze Teck, senior director of data analytics at Huttons Asia. This is apparent with the fully sold out Copen Grand, an EC launched in October 2022 at a land site awarded to City Developments Limited (CDL) and MCL Land in June 2021.

The high number of bidders may suggest that developers are entering a market more stable and well-supported, with the additional buyer’s stamp duty applied for second property purchases providing a perceptive advantage for ECs that offer an upfront remission.

The Plantation Close site also appealed to developers due to its proximity to the future Tengah Park MRT Station. Additionally, this station provides easy access to the Jurong Lake Gardens, Jurong Innovation District and Nanyang Technological University via the Jurong Regional Line.

For potential buyers, ERA Singapore’s key executive officer Eugene Lim estimates that the future EC’s launch price could be between $1,450 to $1,550 psf, while PropNex’s Wong predicts an average selling price of around $1,500 psf.

Good connectivity is crucial for strong real estate values. With the Jurong Region Line (JRL), this is certainly the case for Lumina Grand EC CDL. Future homeowners and investors of this EC are optimistic of higher returns due to this infrastructural development. As such, the prospect of potential appreciation in the property value is something to look forward to.

The success of Hoi Hup Realty and Sunway Developments in the land tender for the Plantation Close EC site in Tengah indicates strong confidence in the EC market and the area. This comes after Copen Grand was sold out quickly at an estimated launch price of between $1,450 to $1,550 psf. The high number of bidders could also suggest that developers are looking to enter a more stable market. Not only does this EC site offer easy access to Tengah Park MRT Station and nearby amenities, but ECs also provide an upfront remission compared to other properties.