Press Release

Press Release

23 December 2022

Launch of land parcels at TAMPINES AVENUE 11 AND PLANTATION CLOSE

FOR IMMEDIATE RELEASE

Singapore, 23 December 2022 – The government has just launched the land parcels at Tampines Avenue 11 and Plantation Close.

Tampines Avenue 11

The plot at Tampines Avenue 11 is zoned for Commercial and Residential use, with a site area of around 50,679.7 sqm. Approximately 1,190 units can be built in this area, with a large commercial area. The upcoming development will serve as another commercial and retail hub for Tampines.

The site is an integrated development, given the direct connection to the future Tampines North MRT station. Integrated developments remain attractive to buyers, given the convenience of having a transport node and shopping amenities at one’s doorstep. There are many BTO sites located close by; hence, there will likely be heavy footfall to the retail and commercial hub. Therefore, this site will be attractive to developers.

For the residential units, there is likely to be strong pent-up demand from HDB upgraders as private housing supply in the vicinity remains limited. The only project nearby is the EC Tenet at Tampines St 62, which sold extremely well on its weekend launch The project moved more than 70 per cent of the total units, indicating a good appetite for private homes in the area. No other new private projects have been launched in Tampines in recent years, and other projects in Tampines are completely sold out, such as the condo Treasure at Tampines, and the EC Parc Central Residences. Moreover, future supply is low, with only another EC plot at Tampines St 62 to be put up for tender in March 2023.

This site is large, translating to a bid quantum exceeding S$1 billion. Developers may generally be cautious of the rising interest rate environment, economic uncertainties, and high construction costs. Hence, we expect around 2 to 5 bidders, with the highest bid price of around S$1,150 to S$1,250 psf ppr.

EC at Tengah Planation Close

The EC at Tengah Plantation Close has a site area of around 16,441.2 sqm, which may generate around 495 units. The site is within short walking distance of the future Tengah Park and Bukit Batok West MRT station on the Jurong Region Line. This site is also near the Jurong Lake District.

The most recent EC land tender was at Bukit Batok West Avenue 5, sold on 28 September 2022, at a bid price of S$626 psf ppr from City Developments Ltd.

Recent EC launches have experienced strong sales. For instance, Copen Grand was sold out within a month, and Tenet sold over 72 per cent of its units on the launch day. Buyers who missed the buying opportunity at Copen Grand may be keen to purchase this project.

ECs will remain popular despite the recent cooling measures and interest rate hikes.  As prices of new condominiums continue to rise and the price gap between a new private condo in the suburbs and a new EC remains significant (can range between S$600psf and S$700 psf), buyers will consider ECs, which are more affordable and able to offer good value for aspiring HDB upgraders.  

We anticipate 4 to 7 bidders for this EC site with a top bid of around S$620 to S$670 psf ppr.