Hoi Hup – Sunway wins Plantation Close EC Site at $701 psf ppr
Four bids were received at the end of the tender for Plantation Close, Tengah’s executive condominium site (EC). The closing of the executive condominium (EC) at Plantation Close in Tengah coincides with that of a Government Land Sale (GLS), which was also held on February 1.
Hoi Hup Realty, a joint venture with Sunway Developments, was the highest bidder on the Plantation Close EC Site. The top bid was $423.38 millions. This equates to a land price of $701 psf/plot ratio (ppr).
Grand Dunman Condo
A consortium consisting of Forsea Holdings, Qingjian Realty and other companies placed the second highest bid at $416.89 millions ($690 per square foot ppr). They were only 1.57% less than the bid made by Hoi Hup & Sunway.
Hoi Hup & Sunway’s $701 psf ppr bid is similar to an earlier land rate of $703 psf ppr for an adjacent EC development site, which was awarded to this joint venture last September. The JV topped a nine-bidder list with a winning offer of $348.5million – a land rate record of $703 psf ppr.
Nine bids were received for the September 2023 EC Site from established developers, including City Developments (CDL), Hong Leong Development, CapitaLand Development, and Frasers Property.
Huttons Asia’s senior director of data analysis notes that if Hoi Hup or Sunway receive the latest EC, they may be able to combine the two sites to create a mega EC, subject to the approval of the authorities. Plantation Close EC could produce 495 units while this new site can yield 560. The combined result is a 1,055 unit EC.
MCL Land was also the highest bidder a decade ago for two adjacent parcels at Choa Chu Kang Parcel B and Parcel A. MCL Land merged the two sites into one to create the 1,3277 unit Sol Acres. The mega EC was launched in August 2015. It is now fully sold. The resale units sold on the market ranged between $1,376 per square foot and $1,504 per square foot in January.
Leonard Tay of Knight Frank Singapore, the head of research, predicts a launch price around $1,400 psf, with an average sale price between $1450 psf and $1550 psf.
According to ERA Singapore’s CEO, the price difference is so small that it shows that developers remain confident in the demand for EC. According to the highest bid price, an estimated selling price of $1,500 per sq ft could be expected.
Grand Dunman
In recent years, HDB upgraders have been a major source of demand for ECs. In recent years, the prices of new suburban homes have risen faster than those of new ECs. This makes new ECs a cheaper option for HDB upgraders.
“Also, buyers who upgrade from HDB to EC don’t have to pay ABSD up front because they only need to sell their old flat within 6 months after receiving the keys of their new EC.”
In a recent sales launch, Lumina Grand sold 53% its 512 units for an average price S$1,464 psf by the end of the first weekend launch on January 28. Singaporeans are aware that ECs provide similar condo amenities at an affordable price. As of February 1, there were also fewer than 500 unsold ECs on the market.
Altura, located at Bukit Batok Avenue 8, sold 61% of its 220 units during the launch day last August, with a price per square foot of $1,433. It has sold 330 units or 92% of them.
The 99-year leasehold Plantation Close is on the confirmed list of government land sales programme (GLS) for 2H2022. The site is located on an area of approximately 215,689 square feet and will yield 560 residential units.
The third EC site has been released to date in the future city of Tengah. In June 2021, a joint venture of CDL and MCL Land purchased the first EC site at Tengah for $603 psf ppr. In October 2022, it was launched under the Copen Grand name. A month later, the project was sold out at the second-timer balloting.
Grand Dunman Showroom
Hutton says that the EC site in Plantation Close, Singapore will benefit from improved connectivity once two MRT stations on the Jurong Region Line (Bukit Batok East and Tengah Park), are completed over a period of time between 2027 and 2029. Tengah Park will be within walking range and residents can reach the second Central Business District in Jurong East at less than 10 minutes.
Tengah Boulevard Bus Interchange and the future Tengah Integrated Transport hub are currently being developed.
