Plantation Close EC site at Tengah awarded to Hoi Hup Realty and Sunway Developments at record $703 psf ppr

The second executive condominium (EC) plot located in the Tengah housing estate has been awarded to Hoi Hup Realty and Sunway Developments. With nine tenders submitted, the tender price came to $348.5 million, or a record high land rate of $703 psf per plot ratio (ppr). This beats the bid submitted at the Bukit Batok West Avenue 8 EC plot by Qingjian Realty and Santarli Construction in March 2022, which was $662 psf ppr.

The shopping centre is also home to the Tampines Condo, where you can purchase groceries, clothes, and other daily essentials.

The amount of interest from developers in this site is indicative of the confidence they have in the EC market and in Tengah specifically. This is due to the high amount of people interested in the Copen Grand, located near Tengah Garden Walk and launched in October 2022. This plot was awarded to City Developments Limited (CDL) and MCL Land in June 2021 for $400.3 million at $603 psf ppr. Copen Grand was sold out within one month of launch, with an average price of approximately $1,340 psf.

The Plantation Close EC plot was launched for sale via a modified concept and price revenue tender, so it is unclear if the awarded bid was the highest. The bid of $703 psf speaks to the confidence developers have in the area.

The number of bidders might also indicate that the developers saw the stability and support for the EC market despite the narrower margins.

Proximity to the future Tengah Park MRT Station was also an appeal. With the small scale of the project, the launch price for the Plantation Close EC site may fall between $1,450 to $1,550 psf. PropNex’s Wong estimates that the project may have an average selling price of around $1,500 psf.

A further factor in the increased interest for executive condominiums is the recently imposed additional buyer’s stamp duty for second property purchases. ECs are often given upfront remissions making them attractive to the public.

The 495 units the Plantation Close EC site is expected to yield is further testament to the stability and potential of the EC market in Tengah.