SINGAPORE: A prime Executive Condominium (EC) site at Tampines Street 95, listed under the 2H2024 Government Land Sales (GLS) programme, is projected to draw considerable interest from developers, with bids potentially reaching up to $760 million.
Located in the established town of Tampines, the site offers proximity to essential amenities and strong transport links, making it highly attractive.
Justin Quek, CEO of OrangeTee & Tie, told Singapore Business Review (SBR) that he anticipates a competitive bidding process, estimating that the site could receive between five and eight bids. He expects the top bid to range from $680 to $760 per square foot per plot ratio (psf ppr).
Mr Quek emphasized the site’s strategic location near Tampines West MRT station and several key amenities, including educational institutions such as Junyuan Primary School and St Hilda’s Primary School, which enhance its appeal to both developers and potential homeowners.
He said, “The prime location, along with proximity to the SAFRA Clubhouse and an upcoming integrated development at Tampines Street 94, makes this site particularly attractive for developers looking to cater to the growing demand for ECs.”
The analyst also noted that ECs remain one of the most affordable private housing options, especially for HDB upgraders. However, he added that affordability constraints due to income ceilings for EC buyers could limit how high bids may go.
Wong Siew Ying, head of Research and Content at PropNex, echoed Quek’s sentiments, predicting that the site could attract four to five bids, with the highest offer ranging from $433 million to $442 million, translating to $715 to $730 psf ppr.
Ms Wong told SBR that despite recent trends of high land rates, the desirable location would still likely draw competitive bids from developers. However, she also cautioned that rising EC prices could impact buyer sentiment due to affordability issues.
Mark Yip, CEO of Huttons Asia, shared a similar outlook, predicting that up to five bidders could be vying for the site, with the highest bid possibly falling between $650 and $700 psf ppr.
He pointed out that Tampines has seen several Build-to-Order (BTO) launches in recent years, creating a large pool of potential HDB upgraders who might be interested in upgrading to an EC.
Mr Yip also suggested that recent cooling measures in the HDB market are unlikely to significantly impact demand for the new EC, as these measures do not typically affect larger HDB flats, which are often the target market for EC buyers.
TISG/