New Reporter
28-06-23, 11:52
CDL, Hong Leong, Frasers Property, CapitaLand units among 9 bidders for Plantation Close EC site
Jun 27, 2023
AN EXECUTIVE condominium (EC) site at Plantation Close in Tengah drew strong interest from developers, with nine bids received on Tuesday (Jun 27).
Bids came from entities linked to heavyweights City Developments Ltd, Hong Leong, CapitaLand Development and Frasers Property.
The parcel also saw interest from Hoi Hup Realty and Sunway Developments, Qingjian Group, Sim Lian Group, a consortium including Evia Real Estate, and another led by Kingsford, which had on the same day put in the top bid of S$1.03 billion for a prime site in Marina South.
https://i.imgur.com/KWPgDIH.png
The 99-year leasehold Plantation Close EC site, which can yield an estimated 495 units, is located between the future Tengah Park MRT station and Bukit Batok West MRT station. It sits on a land parcel that spans 16,441.2 square metres (sq m), with a maximum gross floor area of 46,036 sq m and maximum building height of 70m to 80 m above mean sea level.
Bids received for the site were evaluated under a modified concept and price revenue tender system, and the results of the tender will be published later.
Analysts expect the winning bid to range from S$600 to S$680 per square foot per plot ratio, based on the strong performance of the 639-unit Copen Grand in Tengah Garden Walk, a nearby EC which launched eight months ago.
CDL and MCL Land acquired the Copen Grand site for S$400.3 million or S$603 psf ppr at a government tender which closed in June 2021.
They sold 465 units, or 73 per cent of the project, at an average of S$1,300 psf at launch in October 2022. The project is now fully sold.
PropNex Realty head of research and content Wong Siew Ying noted that based on caveats lodged, the average price of Copen Grand units sold was S$1,340 psf.
“Developers are very hungry for EC sites,” said ERA key executive officer Eugene Lim. “According to the May 2023 URA’s developers sales statistics, only 747 new EC units are available. That accounts for only less than 10 per cent of all available new sale private home units.
“Even though there is another larger EC site just adjacent which is slated for launch in November 2023, developers are certainly not reserving their bullets for later.”
Tricia Song, CBRE’s head of research for South-east Asia, noted that the Plantation Close site drew more developers than the Bukit Batok West Avenue 5 EC site, which closed its tender in September 2022 with four bids.
The Bukit Batok site was sold to CDL for S$336 million or S$626 psf ppr and the EC being built there is expected to launch in H1 2024.
A nearby EC site in Bukit Batok West Avenue 8 was sold to a joint venture between Qingjian Realty and Santarli Construction for S$266 million in March 2022, or S$661.67 psf ppr.
It will be developed into the 360-unit Altura EC which is expected to start previews in July.
For the Plantation Close parcel, bidders had the option to submit an alternative bid, on top of a base prefabricated pre-finished volumetric construction (PPVC) bid – a building method where large modules complete with finishes are manufactured in factors and assembled on-site. The alternative bid could use non-PPVC technology or a hybrid of technologies to potentially enhance the project’s productivity.
Two submissions included such alternative proposals. The first was the bid from Qingjian Group and Santarli Construction, and the second was from Hoi Hup Realty and Sunway Developments.
Demand for the Plantation Close EC is expected to mostly come from Singaporeans, including first-timers who are unaffected by the new Additional Buyer’s Stamp Duty regime, said Nicholas Mak, chief research officer at property portal Mogul.sg.
Wong Xian Yang, research head at Cushman & Wakefield, said: “Given the rise in private residential prices over the past few quarters, ECs could be a sweet spot for owner-occupiers due to their condo-like facilities and relatively lower pricing.”
Interest in the Plantation Close site could also be due to its strong connectivity with Jurong Lake District and its proximity to Anglo-Chinese (Primary) School, which will move to Tengah in 2030, said Lam Chern Woon, head of research and consulting at Edmund Tie.
https://www.businesstimes.com.sg/property/cdl-hong-leong-frasers-property-capitaland-units-among-9-bidders-plantation-close-ec-site
Jun 27, 2023
AN EXECUTIVE condominium (EC) site at Plantation Close in Tengah drew strong interest from developers, with nine bids received on Tuesday (Jun 27).
Bids came from entities linked to heavyweights City Developments Ltd, Hong Leong, CapitaLand Development and Frasers Property.
The parcel also saw interest from Hoi Hup Realty and Sunway Developments, Qingjian Group, Sim Lian Group, a consortium including Evia Real Estate, and another led by Kingsford, which had on the same day put in the top bid of S$1.03 billion for a prime site in Marina South.
https://i.imgur.com/KWPgDIH.png
The 99-year leasehold Plantation Close EC site, which can yield an estimated 495 units, is located between the future Tengah Park MRT station and Bukit Batok West MRT station. It sits on a land parcel that spans 16,441.2 square metres (sq m), with a maximum gross floor area of 46,036 sq m and maximum building height of 70m to 80 m above mean sea level.
Bids received for the site were evaluated under a modified concept and price revenue tender system, and the results of the tender will be published later.
Analysts expect the winning bid to range from S$600 to S$680 per square foot per plot ratio, based on the strong performance of the 639-unit Copen Grand in Tengah Garden Walk, a nearby EC which launched eight months ago.
CDL and MCL Land acquired the Copen Grand site for S$400.3 million or S$603 psf ppr at a government tender which closed in June 2021.
They sold 465 units, or 73 per cent of the project, at an average of S$1,300 psf at launch in October 2022. The project is now fully sold.
PropNex Realty head of research and content Wong Siew Ying noted that based on caveats lodged, the average price of Copen Grand units sold was S$1,340 psf.
“Developers are very hungry for EC sites,” said ERA key executive officer Eugene Lim. “According to the May 2023 URA’s developers sales statistics, only 747 new EC units are available. That accounts for only less than 10 per cent of all available new sale private home units.
“Even though there is another larger EC site just adjacent which is slated for launch in November 2023, developers are certainly not reserving their bullets for later.”
Tricia Song, CBRE’s head of research for South-east Asia, noted that the Plantation Close site drew more developers than the Bukit Batok West Avenue 5 EC site, which closed its tender in September 2022 with four bids.
The Bukit Batok site was sold to CDL for S$336 million or S$626 psf ppr and the EC being built there is expected to launch in H1 2024.
A nearby EC site in Bukit Batok West Avenue 8 was sold to a joint venture between Qingjian Realty and Santarli Construction for S$266 million in March 2022, or S$661.67 psf ppr.
It will be developed into the 360-unit Altura EC which is expected to start previews in July.
For the Plantation Close parcel, bidders had the option to submit an alternative bid, on top of a base prefabricated pre-finished volumetric construction (PPVC) bid – a building method where large modules complete with finishes are manufactured in factors and assembled on-site. The alternative bid could use non-PPVC technology or a hybrid of technologies to potentially enhance the project’s productivity.
Two submissions included such alternative proposals. The first was the bid from Qingjian Group and Santarli Construction, and the second was from Hoi Hup Realty and Sunway Developments.
Demand for the Plantation Close EC is expected to mostly come from Singaporeans, including first-timers who are unaffected by the new Additional Buyer’s Stamp Duty regime, said Nicholas Mak, chief research officer at property portal Mogul.sg.
Wong Xian Yang, research head at Cushman & Wakefield, said: “Given the rise in private residential prices over the past few quarters, ECs could be a sweet spot for owner-occupiers due to their condo-like facilities and relatively lower pricing.”
Interest in the Plantation Close site could also be due to its strong connectivity with Jurong Lake District and its proximity to Anglo-Chinese (Primary) School, which will move to Tengah in 2030, said Lam Chern Woon, head of research and consulting at Edmund Tie.
https://www.businesstimes.com.sg/property/cdl-hong-leong-frasers-property-capitaland-units-among-9-bidders-plantation-close-ec-site