Tampines Street 95 EC site hits new record high at $768 psf ppr

An Executive Condominium (EC) Confirmed List site at Tampines Street 95 drew five bids at the close of its tender, with the top bid coming in at approximately $768 per square foot per plot ratio (psf ppr), setting a new record land rate for an EC site.

Analysts expect that when the future EC development on this site is launched, its average selling price could exceed $1,600 psf, likely setting a new benchmark for EC prices.

The Housing & Development Board (HDB) announced the tender results for the site on Thursday (24 October). The top bid of $465 million was submitted by Sim Lian Land and Sim Lian Development, units of Sim Lian Group.

A consortium comprising SNC2, Apex Asia, Kay Lim Realty, and Heeton Homes submitted a bid of $457.52 million. Sing Holdings and CSC Land submitted bids of $439.55 million and $438.76 million respectively, while Hong Leong Holdings' Intrepid Investments and TID Residential tendered at $425.70 million.

Launched by HDB under the second-half 2024 Government Land Sales (GLS) programme, the 99-year leasehold site spans 22,489 sq m (approximately 242,070 sq ft) with a maximum gross floor area of 56,223 sq m (approximately 605,179 sq ft). It is estimated to yield around 560 residential units.

Previously, an EC parcel at Jalan Loyang Besar set the record land rate in August this year when it was awarded at a top bid of $729 psf ppr.

Past EC launches in the Tampines area have enjoyed robust sales performances, consistently attracting keen participation and competitive bids from developers. In addition, the current interest rate-easing environment provides developers with greater headroom when bidding for land.

Sales prospects for the future project look promising due to the scarcity of new EC supply in the vicinity, with Aurelle of Tampines being the only upcoming launch. Furthermore, the site is well-supported by nearby amenities, situated close to Tampines West MRT station, future mixed-use commercial developments, and several primary schools.

Notably, Aurelle of Tampines is also developed by Sim Lian Group, the top bidder in this tender. This suggests the developer may have adopted a bolder bidding strategy to defend its market presence in the area.

Market observers estimate that the average selling price of the future development could cross $1,600 psf.

The last EC project launched in Tampines, Tenet, sold 72.3% of its units during its launch weekend in December 2022 at an average price of $1,360 psf. Meanwhile, Lumina Grand in Bukit Batok moved 53% of its units during its launch in January this year, demonstrating that demand for ECs remains resilient despite broader market headwinds.

With Lumina Grand's median transaction price currently standing at $1,524 psf, the average selling price for this new development is likely to exceed $1,600 psf, with three-bedroom units potentially starting from around $1.5 million.