The Housing & Development Board (HDB) has closed the tender for an Executive Condominium (EC) at Plantation Close. The site can yield around 560 units.
There were four bidders, and the highest bid was $423,380,000 or $701 psf ppr, from Hoi Hup Realty Pte Ltd and Sunway Developments Pte. Ltd. The highest bid was just 1.6 per cent above the next highest bid. The most recent EC site sold in the vicinity was the EC site just adjacent to this plot, which was sold to Hoi Hup Realty Pte Ltd and Sunway Developments Pte. Ltd. at a land rate of around S$703 psf ppr in September 2023. Copen Grand, the first EC in Tengah, was sold at a land rate of around $603 psf ppr in June 2021 to Taurus Properties SG Pte. Ltd.
Developers may have been keen to tap on the HDB upgrader demand. ECs are among some of the most attractively priced homes for eligible buyers who wish to stay in a private home. Prices of new suburban private homes have risen at a faster rate compared to prices of new ECs, making new ECs a more affordable option. Additionally, eligible buyers upgrading from an HDB flat to a new EC do not have to pay ABSD upfront since they are only required to dispose of their current flat within six months of collecting the keys to their new EC.
These factors make ECs a popular choice for HDB upgraders, which is evident from the most recent EC launch, Lumina Grand. Over 53 percent of the total units were sold during the launch weekend, with the initial quota of units allocated to second-timers fully reached. There could still be keen demand for future EC projects in this area.
While the existing stock of unsold ECs in the vicinity from Altura and Lumina Grand would be mostly sold off by the time the two ECs here at Plantation Close are ready to launch, there may be some considerations of the earlier adjacent site, which was just awarded in September 2023
There is also an upcoming EC site at Jalan Loyang Besar (in Pasir Ris) which will be launched for tender in May 2024. The last time a plot of land was sold for an EC development in Pasir Ris was in 2012, which may mean that there might be more pent-up demand for ECs there due to the large time gap between EC launches.