Bukit Batok EC site launched for tender, market watchers foresee keen developer inter

Bukit Batok EC site launched for tender, market watchers foresee keen developer interest

Jun 28, 2022

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AN EXECUTIVE condominium (EC) site at Bukit Batok West Avenue 5 has been launched for sale by public tender under the confirmed list of the H1 2022 Government Land Sales programme.

According to a Tuesday (Jun 28) press statement by the Housing & Development Board (HDB), the site can potentially yield about 495 residential units on the 99-year leasehold site.

Spanning a land area of 16,623.7 square metres (sq m), the site can yield a maximum gross floor area of 49,872 sq m with a maximum building height of 60 metres Singapore height datum.

Proposed amenities and facilities to be implemented by the successful tenderer include a 1.5 metre-wide footpath, a 2m-wide cycling path, as well as bus bays and shelters.

The latest site launch marks the third site for EC development within the span of the year.

Huttons’ senior director of research Lee Sze Teck estimates all 3 sites – including the EC site at Tengah Garden Walk which was awarded in June 2021 – could potentially offer up to 1,500 EC units for sale.

He also highlighted the Bukit Batok site’s close proximity to another EC site which was recently in March 2022 awarded to Qingjian and Santarli at S$662 per square foot per ratio (psf ppr).

“Developers may be mindful of the potential supply in the area and hedge against risks. The estimated bid for the EC site is between S$640 and S$680 psf ppr and there could be up to 8 bidders,” said Lee of the Bukit Batok site.

“There are around 8,000 owners of 3-room and larger flats which will fulfil the 5-year MOP (minimum occupation period) from 2022 to 2024 who may choose to upgrade to an EC. Buyers of EC units have the advantage of not being subject to cooling measures, wealth taxes and can opt for a deferred payment scheme,” he added.

Due to a lack of supply in the area, OrangeTee & Tie chief executive Steven Tan expects demand for the site to be healthy and draw about 7 to 9 bidders to the site

“As the price quantum is not big, this parcel should fit the risk appetite of many developers,” he said.

Tan estimates the plot’s land price range between S$620 to S$700 psf ppr, with a selling price range of S$1,300 to S$1,400 psf.

Like Lee of Huttons, he is anticipating more upgraders looking for ECs in the area as more flats within the vicinity are slated to reach MOP.

The tender for the Bukit Batok West Avenue 5 site will close at 12 noon on Sept 13, 2022.

Its closing will be batched together with two other URA residential sale sites at Lentor Central and Lentor Hills Road (Parcel B), which were launched for sale earlier in May this year.

https://www.businesstimes.com.sg/rea...loper-interest