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Thread: Bt Batok EC site launched; bids unlikely to top record for Tampines plot

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    Default Bt Batok EC site launched; bids unlikely to top record for Tampines plot

    Bt Batok EC site launched; bids unlikely to top record for Tampines plot

    Dec 23, 2021



    THE Housing & Development Board (HDB) on Thursday (Dec 23) launched an executive condominium (EC) site at Bukit Batok West Avenue 8 for sale by public tender.

    This is the second EC site launched in 2021, after the Tampines Street 62 parcel's tender in April, which closed in July with a fresh price record.

    The release of the Bukit Batok site comes a week after the government introduced new property cooling measures and also said it will boost supply in both the private and public housing markets to cater to demand.

    The 99-year leasehold site falls under the confirmed list in the H2 2021 government land sales (GLS) programme, HDB said in its press statement on Thursday. Sites on the confirmed list are launched according to schedule, regardless of demand.

    The Bukit Batok parcel is expected to yield 375 residential units. It has a site area of 12,449.30 square metres (sq m) and maximum gross floor area of 37,348 sq m, with maximum building height of 60-70 metres Singapore height datum.

    Among the new market cooling measures announced on Dec 15 are higher additional buyer's stamp duty (ABSD) rates. Developers now have to fork out an increased ABSD of 35 per cent on a residential land purchase.

    PropNex CEO Ismail Gafoor said the Bukit Batok Avenue 8 site may "attract a fairly healthy turnout of bidders", given the diminishing supply of new EC units in the market, as well as developers potentially seeking a less risky development site to add to their land inventory.

    "ECs have always been popular among homebuyers owing to their more affordable prices. In addition, ECs tend to appeal to the groups of buyers, such as first-time Singaporean home buyers or HDB (Housing Board) upgraders who are least affected by the new cooling measures," he added. ABSD is fully remitted when acquiring a new EC unit if the buyer is a Singaporean.

    Lee Sze Teck, senior director (research) at Huttons Asia, noted that there are a total of 7,788 3-room to 5-room HDB flats completed from 2015 to 2018 which will offer a potential pool of HDB upgraders for the EC project when it is launched for sale in 2023.

    The site is located in the suburban area of Bukit Batok where private housing supply is fairly limited. "The new EC project will be popular amongst HDB upgraders in the area looking for a private home within the same estate," Gafoor said. ECs are a private-public housing hybrid.

    Lee estimates the site to attract bids of between S$580 and S$630 per square foot per plot ratio (psf ppr), with up to 10 parties bidding.

    Gafoor projects that the top bid could range from S$241.2 million to S$261.3 million, reflecting a land rate of about S$600 to S$650 psf ppr. Some 8 to 12 bids may come in, he said.

    ERA head of research and consultancy Nicholas Mak has lower expectations for the top bid ranging from S$520 to S$580 psf ppr, or about S$209 million to S$233 million. The tender could attract 6 to 10 bids, he said.

    Despite the popularity of ECs among buyers, PropNex expects bids for this site to be moderate, given the lack of amenities in this neighbourhood compared to the Tampines Street 62 EC site, as well as ongoing concerns over rising construction costs among developers.

    The Tampines plot set a new record in July 2021, with the top bid coming in at S$422 million or S$659 psf ppr, exceeding the forecast of most property consultants. It also surpassed the earlier record of about S$603 psf ppr set in May 2021 for an EC plot in Tengah Garden Walk, which is near the Bukit Batok site.

    On top of that, there is an upcoming adjacent EC site at Bukit Batok West Avenue 5, which is larger and can yield 495 units. That plot is slated to be launched for tender in June 2022, and may pose competition for the Bukit Batok West Avenue 8 site, Gafoor said.

    The tender for the Bukit Batok West Avenue 8 land parcel will close at 12 pm on Mar 8, 2022, the same day as the tender closing for a residential site at Dairy Farm Walk that was launched by the Urban Redevelopment Authority in October this year.

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    Default Re: Bt Batok EC site launched; bids unlikely to top record for Tampines plot

    Exec condo site in Bukit Batok West Avenue 8 launched for tender

    The site has a lease period of 99 years and can potentially yield about 375 residential units. PHOTO: SCREENGRAB FROM GOOGLEMAPS

    Choo Yun Ting

    Dec 23, 2021



    SINGAPORE - An executive condominium (EC) site in Bukit Batok West Avenue 8 was launched for sale via public tender on Thursday (Dec 23).

    The site has a lease period of 99 years and can potentially yield about 375 residential units.

    It was launched by the Housing Board under the second-half 2021 government land sales programme.

    The land parcel, which is about a 10-minute walk from Bukit Gombak MRT, has a site area of 12,449.3 sq m and a maximum gross floor area of 37,348 sq m.

    The maximum building height is between 60m and 70m Singapore height datum.

    It is located near Bukit Batok Hillside Park and Dunearn Secondary School, as well as close to sites reserved for future high-rise residential developments.

    Analysts said the EC site could attract a fair amount of interest from bidders, given the diminishing supply of new EC units in the market.

    PropNex Realty chief executive Ismail Gafoor highlighted that ECs have always been popular among home buyers due to their more affordable prices, and tend to appeal to some first-time home owners or HDB upgraders who are least affected by the recently announced property cooling measures.

    He added that the development is located in an area where private housing supply is fairly limited, with the last private residential project there being the nearby Le Quest, which saw hot take-up when it launched in August 2017.

    “The new EC project will be popular among HDB upgraders in the area looking for a private home within the same estate,” he said.

    Mr Ismail said that as developers seek to replenish their land bank, he expects the relatively mid-sized parcel in Bukit Batok to receive between eight and 12 bids.

    The top bid could range from $241.2 million to $261.3 million, reflecting a land rate of about $600 to $650 per sq ft per plot ratio (psf ppr).

    Huttons Asia senior director of research Lee Sze Teck said that the estimated bid for the EC site is between $580 and $630 psf ppr, and that there could be up to 10 bidders.

    It could see more interest from developers as buyers are not affected by the increase in additional buyer’s stamp duty, he added.

    Mr Lee said that the vicinity offers plenty of amenities such as food and beverage outlets at Le Quest Mall and the upcoming Tengah estate.

    The site is also within a five-minute’s drive to the Pan-Island Expressway.

    Tender for the Bukit Batok land parcel will close at noon on March 8, 2022.

    Its closing will be batched with a residential site in Dairy Farm Walk, which was launched by the Urban Redevelopment Authority in October.

    The Dairy Farm site in Upper Bukit Timah, which can accommodate about 385 units, is expected to garner quite a few bids from developers.

    The land parcel is located in a quiet enclave close to nature, near the Bukit Timah Expressway, and around 10 minutes' walk to Hillview MRT station.

    It is also next to the German European School.

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