ERA Realty’s Eugene Lim Foresees Fierce Rivalry as Developers Vie for Bukit Batok and Tengah EC Sites; Plantation Close EC Parcel B Added to the Mix
Located at Plantation Close, the site is conveniently situated adjacent to another EC site, Plantation Loop. This site was recently awarded jointly to Hoi Hup Realty and Sunway Developments in September 2021. The winning bid for the site was $348.5 million, resulting in a land rate of $703 psf per plot ratio (ppr). This makes Plantation Close EC Parcel B EC a highly sought-after development in the area, with its prime location and attractive land rate.
The addition of the Plantation Close EC Parcel B to the mix has raised the stakes even higher. This site is located in a mature estate with established amenities, making it a highly desirable location for potential buyers. With a site area of 20,000 square meters, it has the potential to accommodate more than 500 housing units. The sheer size and prime location of this site make it a highly coveted piece of land for developers.
ERA Realty’s Head of Key Executive Officer (CEO) & Key Executive Leader (KEL), Eugene Lim, predicts a fierce battle among developers for the Bukit Batok and Tengah EC sites. These two sites are highly sought after due to their prime location and potential for development. The newly released Plantation Close EC Parcel B, situated in Bukit Batok, throws another contender into the mix, further intensifying the competition.
However, the intense competition for these sites may not necessarily yield positive results for buyers. With developers paying record prices for the land, it’s likely that the cost will be passed on to the buyers in the form of higher prices for the EC units. This could make it more challenging for the middle-class to afford an EC unit, defeating the purpose of providing affordable housing options.
The Housing and Development Board (HDB) has recently announced the release of two executive condo (EC) sites up for sale. The first site, situated at Plantation Close in Tengah, has been placed on the Confirmed List of the 2H2023 Government Land Sales (GLS) programme. The second site, located at Tampines Street 95, is part of the Reserve List of the 2H2023 GLS programme and is currently open for interested parties to apply.
According to Eugene Lim, key executive officer of ERA Realty, the two upcoming EC sites are expected to attract “fierce competition” among developers. He notes that in the last year, four EC sites in Bukit Batok and Tengah received an average of seven bids per site. This high level of interest from buyers has prompted more developers to enter the EC GLS tenders in hopes of securing these lucrative projects.
Real estate in Singapore is a hotly contested market, with developers constantly vying for prime land to build their latest projects. This competition has only intensified in recent years, with the rise of executive condominiums (ECs) as a popular housing option for the middle class. And now, with the addition of the Plantation Close EC Parcel B to the mix, the rivalry is set to reach new heights.
Furthermore, the oversupply of EC units in recent years could result in a glut in the market, leading to a drop in property prices. This could prove to be a risk for both developers and buyers alike. Developers will have to ensure that they can sell the units at a profitable price, while buyers will have to be cautious and not overpay for their units.
In conclusion, the addition of the Plantation Close EC Parcel B to the highly coveted sites of Bukit Batok and Tengah has further intensified the competition among developers in the EC market. With limited land availability and a growing demand for affordable housing, it’s no surprise that developers are willing to pay record prices for these prime sites. However, it remains to be seen how this competition will affect both the developers and potential buyers in the long run. Only time will tell if the intense rivalry will result in successful and profitable developments, or if it will lead to oversupply and a drop in property prices.
But it’s not just about location; the design and concept of the EC projects will also play a crucial role in determining the success of the developments. Lim believes that developers will have to come up with innovative and attractive designs to stand out in this highly competitive market. This will not only attract potential buyers, but also enhance the overall value of the projects.
Lim foresees that the bidding for these sites will be highly competitive, with developers offering record-breaking prices to secure the land. The demand for ECs has been steadily increasing over the years, driven by a growing middle class and the government’s efforts to provide affordable housing options. These factors have led to a surge in EC prices, making it a lucrative market for developers.
The Bukit Batok and Tengah EC sites also have the advantage of being located near upcoming amenities and transportation hubs. The nearby Jurong Innovation District and Tengah New Town will further enhance the value of these sites, making them even more attractive to developers. With limited land availability in such prime locations, it’s no surprise that developers are scrambling to get their hands on these sites.