Plantation Close EC site sees strong interest with nine tenderers submitting bids
/ EdgeProp Singapore |
Location plan for the EC land parcel at Plantation Close (Source: HDB)
SINGAPORE (EDGEPROP) - The tender for the executive condominium (EC) site at Plantation Close, which closed on June 27, drew strong interest with nine tenderers submitting bids.
The site is the first to use a modified concept and price revenue tender system. Under this system, developers have the option to submit an alternative bid on top of a base Prefabricated Prefinished Volumetric Construction (PPVC) bid. The alternative bid may utilise a non-PPVC technology or a hybrid of construction technologies that result in specified productivity improvement.
PPVC bids will automatically qualify for the tender evaluation, while any alternative bid will require the submission of a write-up to demonstrate the feasibility of the proposal. A Concept Evaluation Committee chaired by the Building Construction Authority will assess whether the alternative bids can reasonably fulfil the productivity improvement requirements before they can be considered as qualifying bids to proceed with the tender evaluation.
According to HDB, a decision on the award of the tender will be made after the tenders have been evaluated, which will be published at a later date.
Among the nine tenderers for the site, two of them – a joint venture between Hoi Hup Realty and Sunway Developments and a joint venture between Qingjian Realty and Santarli Construction – submitted alternative bids.
The 176,907 sq ft EC site at Plantation Close is expected to yield about 495 units. This is the second EC site that has been released in the future Tengah town. The first site was Copen Grand which was launched in October of last year and fully sold out by the following month. The site is also adjacent to another upcoming EC plot under the Confirmed List for the 2H2023 GLS programme that can yield 560 homes. The site is estimated to launch in November.
Map showing the adjacent EC sites at Plantation Close. The site on the right is the plot that closed its tender on June 27, while the site on the left is the site under the 2H2023 GLS programme expected to launch in November (Source: EdgeProp LansLens)
“There was an overwhelming interest for the Plantation Close EC site, despite the significant potential competition from the two unlaunched EC projects at Bukit Batok West Avenue 8 and Avenue 5 and the neighbouring Plantation Close parcel in the 2H2023 GLS Confirmed List,” remarks Lam Chern Woon, head of research and consulting at Edmund Tie.
He reckons the strong interest in the site could be due to its proximity to the future Tengah Park MRT Station on the Jurong Regional Line, which will enhance connectivity to commercial nodes such as Jurong Lake District, Jurong Innovation District and Tuas Port. Lam adds that the success of Copen Grand has also likely instilled further confidence among the developers bidding for the site. (Find Singapore commercial properties with our commercial directory)
Tricia Song, head of research, Southeast Asia at CBRE, observes that the tender submissions for the site exceed the four bids received in the last EC site tender at Bukit Batok West Avenue 5 which was awarded in September 2022 for $336mil ($626psf ppr). “But this is generally in line with earlier EC tenders such as the nine bids for the Bukit Batok West Avenue 9 EC site awarded in March 2022 for $266 mil ($662psf ppr), and the seven bids for the Tengah Garden Walk maiden EC site in Tengah awarded in June 2021 for $400mil ($603psf ppr),” she adds.
She anticipates the site at Plantation Close to receive a top bid of $330 mil or $670 psf ppr, with a target launch price of $1,400 psf.
The tender for the Pantation Close EC site closed today along with the tenders for two other sites, a mixed-use plot at Tampines Avenue 11 and a site at Marina Gardens Lane.
Check out the latest listings near Tampines Avenue 11, Copen Grand
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