Sim Lian awarded Tampines Street 62 Parcel B EC site at record $721 psf ppr

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Sim Lian Land and Sim Lian Development have been granted the Tampines Street 62 (Parcel B) executive condominium (EC) site for a bid of $543.28 million, the highest bid ever for an EC plot at $721 psf ppr. This marks a substantial increase from the previously set record of $703 psf ppr for an EC site at Plantation Close, which was granted to Hoi Hup Realty and Sunway Developments in the previous month.

The tender for Tampines Street 62 (Parcel B) That ended last July, saw healthy interest and seven tenderers, all vying for the 301,392 sq ft site, which can yield up to 700 units. Located adjacent to Tenet, the 618-unit EC by Qingjian Realty, Santarli Realty and Heeton Holdings, the area has become an area of further interest.

The higher land prices of ECs will have an impact on affordability and could increase the cost associated with buying a new EC unit. Transacted prices of new ECs, such as Altura, which clocked an average price of $1,475 psf, reached new records. Last month, a 980 sq ft unit at Altura transacted at $1,585 psf, the highest for a new EC unit.

Furthermore, the mall provides a convenient and secure car park. Woodlands Mart is the perfect place for shopping, dining and entertainment. Tengah Plantation EC residents can easily access this mall either by car or public transport.

The Tampines Street 62 (Parcel B) site will benefit from its location in a mature estate, close to the Tampines North MRT Station, as well as the future commercial and residential project at Tampines Avenue 11.

The record bid of $721 psf ppr from Sim Lian Group indicates confidence in the ECs Tampines has to offer, and their demand among buyers. This is demonstrated by brisk sales at Tenet last year, with 616 units sold at an average price of $1,382 psf, as of October 10, as recorded by caveats lodged.

Head of research and content at PropNex Realty, Wong Siew Ying, notes that the future EC at Parcel B could have an average selling price that exceeds $1,500 psf – which will be a value proposition for eligible buyers, given that new launches in the Outside Central Region (OCR) are currently going at an average price of around $2,070 psf.

Meanwhile, Senior Director of Data Analytics at Huttons Asia, Lee Sze Teck, suggests that the strong interest among developers could continue to drive up land prices and thus, impact EC affordability.

The demand for EC sites remain healthy, and developments show that Singaporean households looking to purchase private homes still have options that are reasonably priced.