Several records were broken when bids for residential plots of 2 different locations were lodged recently under the GLS (Government Land Sales) program.
The news about the tender of both 99 years leasehold plots was circulated recently. Of these 2 sites, one an upcoming Executive Condominium (EC) land parcel at Tampines while the other one will be a residential site for private housing along Lentor Central. The tenders for both were closed last night with nine bids each from influential investors. Reports reveal that both these sites were already added to the confirmed list of sites under the first quarter 2021 Government Land Sales program. Moreover, they were now launched right as per the previously mentioned schedule. In combined form, they can lead to 1195 residential units.
The best bid that most won the EC plot of the Tampines Street 62 was ultimately lodged by a joint venture run by Santarli Constructions and Qingjian Reality at a price tag of $422 million which translated to $659 psf ppr.
This bid was almost 1.4% above in comparison to the second bid placed for the property with the estimate of $416.3 million. It is also important to mention that $422 million is the highest land rate that could be paid for an EC site ever.
The current bids have broken all previous records of land rate (around $603 psf) for the EC site located at Tengah Garden Walk. Analysts also observed that among the bid for the Tampines EC plot which consists of total space for approximately 590 residential units, six of the bids actually were right above the $603 per land rate. The developers in the area may have to sell the Tampines EC Project in the future with $1250 psf based on the land bid price. The ongoing median transacted price for whole new EC units is $1154 psf for the second quarter of this year.
The experts working in the research and consultancy departments of the local real estate market believe that the main reason behind rising demands for this site is the close proximity to Tampines town amenities and the upcoming Tampines North MRT station.
The median price for the Piermont Grand site was reported to be $1151 psf, whereas it was $1173 psf for Parc Central Residences. Therefore, there are chances for breaching of median selling price for the new ECs above $1200 psf on the launch of the site.
On the other side, the GuocoLand unit was also listed among the top bidders for the Lentor Central residential land parcel. The offer was closed at $784.1 million, which was 4.5% higher as compared to the second-highest bid ($750) for this property.
This plot was also listed by Urban Redevelopment Authority, and it is earmarked for the impressive private residential development along with the commercial space available on the first floor. This property could lead to around 605 units. The commercial component of this site will ensure easy access to the retail options and other essential amenities for the residents. Therefore, this site has gained more confidence from developers in the entire suburban market.
More information on the above land tenders can be found in the article below,