Executive condominium plot with 560 units for sale in Tampines

Executive condominium plot with 560 units for sale in Tampines

The tract is from the H2 2024 government land sales list.

Aug 22, 2024

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The Housing and Development Board is selling an executive condominium (EC) plot on Tampines Street 95 that potentially produce 560 homes.

The bidding for the site will conclude on Oct. 24 from the H2 2024 government land sales program.

EC land auctions have witnessed strong demand and enthusiastic top bids even as private-housing developers become more cautious and risk-averse. Market observers predict four to eight offers for the Tampines property, with estimations between S$650 and S$750 per square foot per plot ratio.

This month, a joint venture between CNQC International (Qingjian Realty's parent firm), China Communications Construction firm, and ZACD won an EC site at Jalan Loyang Besar in Pasir Ris for S$557 million, or S$729 psf ppr, after four bids.

The offer of S$729 psf ppr set a new record for EC plots, beating the previous high of S$721 for a parcel in Tampines Street 62 sold to Sim Lian.

Popular with homebuyers, EC properties sell well upon launch.

PropNex's director of research and content, Wong Siew Ying, said ECs provide lesser risks to developers with a solid demand pool.

Tenet, the final Tampines EC project, sold 72% of its 618 units on opening day in December 2022. She said that the 512-unit Lumina Grand EC in Bukit Batok sold 53% of its supply on its inaugural weekend in January 2024.

Mark Yip, CEO of Huttons Asia, said the property up for tender is on a mature estate with several Build-to-Order launches in recent years and a substantial pool of prospective purchasers wishing to upgrade to an EC.

The newest HDB market cooling measures announced on Monday (Aug 19) are “unlikely to affect the new EC market as there is no impact on the four-room and larger flats market and these owners tend to make up the bulk of HDB upgraders”, Yip said.

The Tampines Street 95 site is 22,488.9 sq m with 56,223 sq m of gross floor space. The Tampines West MRT station is nearby.

Marcus Chu, ERA Singapore's CEO, said three EC launches between 2025 and 2026 might supply roughly 2,000 apartments in eastern Singapore.

Justin Quek, CEO of OrangeTee & Tie, said that one more EC plot would emerge in Tampines, on Tampines Street 62, possibly in 2025.

ECs continue to attract buyers, but PropNex's Wong warned that increased EC unit prices may “test the affordability threshold of buyers”. Buying new EC flats from developers requires a 30% mortgage servicing ratio and a S$16,000 monthly family income cap, among other criteria.

The latest URA Realis data shows that the median unit price of new ECs sold this year up to Aug. 10 was S$1,502 psf, up 6% from S$1,417 in 2023, 12.3% from S$1,337 in 2022, and 28% from S$1,175 in 2021.

Huttons Asia anticipates bids for the Tampines Street 95 plot to follow the tender results for a nearby mixed-use property in Tampines Street 94, which closes on Sep 19.

“To be competitive, there has to be a comfortable price gap between the two sites,” Yip added.