To celebrate the holiday season, the Housing and Development Board (HDB) has put up for auction two plots of land as part of the 2H2022 Government Land Sales (GLS) programme.
Executive Condo site at Bukit Batok's Plantation Close, and a commercial/residential mixed-use property on Tampines Avenue 11. Between the two properties, there is space for around 1,685 additional homes.
There are 545,314 square feet available for construction on the lot at 11th Street in Tampines. On this plot of land will be built a commercial and residential complex, as well as a community club, a bus interchange, and a hawker center. About 1,190 dwelling units might be produced by the housing component.
PropNex Realty's director of research and content, Wong Siew Ying, said the new development would "inject much-needed additional supply of privatized mass market residences".
Because of the increasing number of people living in Tampines, she argues that the land's potential as a suburban retail outlet is an attractive selling point for developers.
She continues by saying that prospective homebuyers, such as HDB upgraders already residing in the East, would find this future comprehensive development to be appealing.
Seven unfinished BTO projects and one EC development are in Tampines North, notes Lee Sze Teck of Huttons Asia. For this property, the highest price might exceed $1,000 psf. Nevertheless, the massive size of the site and the total amount, which is expected to exceed $1 billion, would undoubtedly entice consortiums to "divide the risks."
Wong concurs that developer alliances are more likely to succeed in this attempt. She predicts that the location would get two or three bids, with the highest one coming in at $1.2 to $1.3 billion, which works out to $850 to $950 per square foot per year for the land.
Meanwhile, the EC site at Plantation Close, which is 176,907 square feet, is anticipated to produce about 495 apartments. To date, this is the 2nd EC site to go live in the planned community of Tengah. The first development, called Copen Grand, debuted in October of this year and had sold out by the 26th of November.
As a result of Copen Grand's popularity, builders may be interested in EC sites in Tengah. According to Lee, the property has the potential to attract up to eight developers, who may offer a price range of $630 to $680 psf ppr as their highest bid.
Wong echoes this sentiment, stating that the site's position in a promising new housing sector, as well as the scarcity of available new EC units, would increase its appeal to builders. We anticipate five to six offers for the property, with the highest price sitting between $297 and $322 million. This would equate to a land cost of around $600 to $650 per square foot per year.
HDB has announced that the EC project at Plantation Close will test out a new revenue tender procedure with a slightly adjusted concept and pricing. For the sake of "encouraging the use of new building technology and profitable construction processes," the governing body has decreed as much.
Developers participating in this pilot project will provide a Prefabricated Prefinished Volumetric Construction (PPVC) proposal as well as an optional alternative. The alternative might make use of a combination of building methods or a non-PPVC technology to achieve the desired efficiency boost.
For this project's proposal, a thorough concept design proposal is not necessary. Whether or not the alternative offer "can adequately complete the productivity enhancement criteria and give benefits equal to those of PPVC technology" will be determined by a committee led by the Building and Construction Authority, according to HDB.
Both GLS lots will be up for bid until June 27th, 2023. URA's December 5 inauguration of a mixed-use property on Marina Gardens Lane will coincide with the shutdown.