SINGAPORE (EDGEPROP) - The tender for the executive condominium (EC) site at Tampines St 62 closed today with nine bids. The highest bid of $422 million or $659 psf per plot ratio (psf ppr) came from a joint venture between Qingjian Realty and Santarli Construction. The top bid exceeded the previous record bid of $603 psf ppr for the Tengah Garden Walk site in May 2021. (See also: [UPDATE] Hoi Hup-Sunway sell 59% of units at Parc Central Residences at launch)
The site at Tampines St 62 is so hotly contested that the differential between the top two bids stands at just 1.4%, says Tricia Song, CBRE head of research for Southeast Asia. The second highest bid of $650 psf ppr came from a joint venture between Hong Leong Group and TID, a joint venture between Hong Leong and Japanese developer, Mitsui Fudosan.
With a maximum GFA of 59,498 sqm, an estimated 590 EC units can be built on the site at Tampines St 62. At the top land rate of $659 psf ppr, CBRE’s Song reckons the launch price of the new EC to be at an average of $1,200 psf.
The current median transacted prices for new EC units sold by developers in 2Q2021 is $1,154 psf, says. Nicholas Mak, head of research of ERA Realty. “This new land price will make all the existing EC projects relatively cheap by comparison,” he says.
“The optimistic top bid reflects a positive outlook on EC prices as well as strong demand for residential sites due to developers’ declining inventory of unsold units,” says Ong Teck Hui, JLL senior director of research & consultancy.
Tampines is a popular location with EC buyers, adds Ong. He points to Parc Central Residences at Tampines Street 86, which was launched in January this year: It is about 86% sold, achieving a median price of $1,173 psf. (See: Browse newly launched condos in Singapore right now)
Another attraction of the EC site at Tampines Street 62 is that it’s located about 500m from the upcoming Tampines North MRT station on the Cross Island Line, points out ERA’s Mak.
Check out the latest listings near Parc Central Residences, Tampines North MRT station