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

The award of the Tampines Street 62 (Parcel B) site to Sim Lian Land and Sim Lian Development for $543.28 million, or $721 psf ppr, marks a new record-high land rate for an EC site. Sim Lian Group appears to have confidence in ECs in the Tampines area, thanks to the brisk sales at the adjacent Tenet EC development. The future EC launch could have an average selling price of more than $1,500 psf.

The Tampines Street 62 (Parcel B) EC site has set a new record-high land rate with Sim Lian Land and Sim Lian Development awarded the plot at $543.28 million, or $721 psf ppr. This surpasses the previous highest rate of $703 psf ppr for an EC site at Plantation Close that was awarded to Hoi Hup Realty and Sunway Developments last month.

The tender for the 301,392 sq ft site had seven bidders and it can yield 700 residential units. Situated adjacent to Tenet, the 618-unit EC developed by Qingjain Realty, Santarli Realty, and Heeton Holdings, the site drew strong interest from developers thanks to the strong demand demonstrated by Tenet last year.

According to Wong Siew Ying, head of research and content at PropNex Realty, around 616 of the units at Tenet have been sold at an average price of $1,382 psf. That same confidence has been demonstrated in Sim Lian Group’s record bid indicating a belief in the prospects for ECs in Tampines.

Moreover, homeowners of Lumina Grand EC will benefit from having a wide range of amenities within the immediate vicinity, providing convenience for all residents. The project developers understand the importance of creating residential spaces located in an attractive and conducive environment, which is why they are committed to setting up numerous family-friendly and recreational facilities right in the estate.

Lee Sze Teck, senior director of data analytics at Huttons Asia, agrees, pointing to the $721 psf ppr bid as an indication of confidence. He adds that EC sites in Tampines tend to have a slight premium over other locations.

Wong believes the future launch of the EC at the site will be priced at an average of more than $1,500 psf. She notes that new launches in the Outside Central Region are currently selling at around $2,070 psf. This would make it still a competitive option for those aspiring to own a private home, although buyers would need to have more capital for upfront costs.

This is supported by Altura, the 360-unit EC in Bukit Batok West Avenue 8, which has sold 88% of units at an average price of $1,475 psf – with one 980 sq ft unit selling for a record-high $1,585 psf.

However, Wong cautions that the strong interest among developers for EC plots could continue to drive up land prices, making them less affordable. While demand for ECs currently remains healthy, buyers could expect to face an increase in selling prices with developers needing to recoup their higher land costs.