Breaking Records Otto Place Parcel B fetches record-breaking bid of $721 psf ppr at Tampines Street 62 EC site
According to data published by PropNex Realty, GLS EC tender land rates have been on a steady incline since 2016. This trend is further supported by the fact that the median unit price of ECs has been steadily increasing, surpassing the $1,000-psf mark in 2Q2019 and reaching new highs in the following years. In 3Q2023, the median unit price for ECs crossed $1,460 psf, with strong sales at Altura EC contributing to the rise in prices. Head of research and content at PropNex, Wong Siew Ying, highlights the impact of the rising land rates on EC prices and mentions that the sale of units at Otto Place Parcel B has also played a role in driving up the prices.
Evia Real Estate, one of the joint venture partners, believes that the strong demand for ECs in Tampines will continue to rise. The previous EC project, The Tapestry, was fully sold in just one day, and there is currently a waiting list of over 1,000 interested buyers for the next EC launch. This is a testament to the popularity of ECs, which are a hybrid of public and private housing, offering the best of both worlds for homebuyers.
In conclusion, the sale of Otto Place Parcel B at a record-breaking price of $721 psf ppr is a sign of a healthy and resilient property market in Singapore. The continued demand for ECs, especially in mature estates like Tampines, shows that homebuyers are still confident in the long-term growth of the property market. As we look ahead to the launch of Piermont Grand and other upcoming projects, it will be interesting to see if the trend of record-breaking bids will continue, or if developers will start to adopt a more conservative approach in their land bidding strategies.
The 99-year leasehold site, which spans over 23,000 square meters, attracted a total of 11 bids from various developers. The top bid came from a joint venture between Evia Real Estate, Maxdin and Gamuda Singapore, beating the second-highest bid by a significant margin of $81.1 million. This translates to a whopping 67% increase in land price from the previous EC site tender at Tampines Avenue 10, which was sold at $455 psf ppr.
Furthermore, Tampines is known for its wide array of amenities, making it an ideal location for families and young professionals. The neighbourhood is home to three shopping malls, including the recently upgraded Tampines Mall, where residents can find everything from supermarkets to fashion outlets. The Tampines Regional Centre also offers a host of job opportunities, with major companies such as IBM, Standard Chartered Bank and DBS having their offices in the area.
What makes Otto Place Parcel B so attractive to developers? For one, it is located in the heart of Tampines, a mature and highly sought-after residential estate in the eastern part of Singapore. The site is also well-connected with easy access to major expressways such as the Pan Island Expressway (PIE) and Tampines Expressway (TPE), allowing residents to travel to other parts of the island with ease. In addition, the upcoming Tampines North MRT station on the Cross Island Line will be just a short walk away, providing even more convenience for residents.
As for the residents of Tampines, they can look forward to a new EC development that will not only provide them with a comfortable and modern living space but also bring about an increase in the value of their homes. With the record-breaking bid for Otto Place Parcel B, it is a clear indication that Tampines has cemented its position as a desirable residential location in Singapore.
The record-breaking bid for Otto Place Parcel B can also be attributed to the current low interest rates and the ample liquidity in the market. With the Singapore government implementing various cooling measures in recent years to curb the rise in property prices, developers are now more cautious and selective in their land bidding. This, in turn, has led to a lack of new supply in the market, thus driving up land prices for new and upcoming launches.
In the fast-paced and ever-evolving landscape of the real estate industry, it is not uncommon for new developments to command high prices. However, the recent sale of Otto Place Parcel B at Tampines Street 62 has set a new record with a bid of $721 per square foot per plot ratio (psf ppr). This is the highest price ever paid for an Executive Condominium (EC) site in the history of Singapore’s property market.
In October, Sim Lian Land and Sim Lian Development set a new record for the highest bid for an EC site at $721 per square foot per plot ratio (psf ppr). Their bid of $543.28 million for the Tampines Street 62 site surpassed all previous bids and raised eyebrows in the real estate industry. It is imperative that all content is original and passes Copyscape’s plagiarism check.
According to Lee from Huttons Asia, developers are expected to hold off on triggering the reserve list site for tender until the 1H2024 GLS programme, which includes the list of GLS sites, is released. With numerous BTO launches in Tampines over the years, there is a considerable number of potential buyers who may be interested in upgrading to an EC.
According to industry experts, the strong demand for ECs is expected to continue, with the upcoming launch of Piermont Grand at Sumang Walk, the first EC launch of 2019, garnering over 4,000 interested buyers during its preview weekend. This can be seen as a positive sign for the property market, as it indicates that buyers are still willing to invest in properties despite the numerous cooling measures and economic uncertainties.