The auction of the executive condominium (EC) site at Plantation Close closing at the end of June generated huge interest, with nine tenderers making bids.
This site was the very first site to utilize an updated concept and revenues tendering system. In this model, developers have the option to present an alternative bid over the base Prefabricated Prefinished Volumetric Construction (PPVC) bid. The alternative bid could use an alternative technology that is not PPVC or a mix of construction methods that will result in a specified productivity improvements.
PPVC bids automatically be eligible for tender evaluation, whereas any alternative bid must be accompanied by the writing up of a proposal to prove the viability of the idea. An Concept Evaluation Committee chaired by the Building Construction Authority will assess whether alternative bids effectively meet the requirements for improving productivity before they are deemed as qualifying bids for proceeding to the evaluation of tenders.
According to HDB, a decision regarding the awarding to the bidder will only be taken after the tenders are assessed, and will be released at a later time.
In the nine tenderers who bid for the site there were two tenderers which were joint ventures between Hoi Hup Realty and Sunway Developments and an alliance between Qingjian Realty and Santarli Construction have submitted alternate bids.
The 176,907 sq. ft. EC site located at Plantation Close is expected to produce around 495 units. It is the 2nd EC site which has been made available in the coming Tengah town. First site is Copen Grand which was launched in October last year and was completely sold out within a month. This site is also located near another EC site that is on the Confirmed List of the 2H2023 GLS scheme that will provide 560 homes. The site is expected to be operational in November.
“There was a huge interest in this Plantation Close EC site, even with the potential for significant rivalry from the two pending EC projects in Bukit Batok West Avenue 8 as well as Avenue 5 and the neighbouring Plantation Close parcel in the 2H2023 GLS Confirmed List” notes Lam Chern Woon, head of research and consulting at Edmund Tie.
He believes the high level of attraction to the site may be due because of its proximity to the coming Tengah Park MRT Station on the Jurong Regional Line, which will increase connectivity to commercial hubs like Jurong Lake District, Jurong Innovation District and Tuas Port. Lam states that the popularity in the case of Copen Grand has also likely given the confidence of developers who are bidding on the site.
Tricia Song, CBRE’s head of research Southeast Asia at CBRE, says that the tender submissions for the site surpass the four bids that were received during the previous EC site tender for Bukit Batok West Avenue 5,, which was given in September 2022 for $336 million ($626psf per share). “But it is in line with previous EC tenders like the nine bids received for Bukit Batok West Avenue 5 EC site, Bukit Batok West Avenue 9 EC site which was awarded in March 2022 at a cost of $266 million ($662psf per person) and seven bids for the Tengah Garden Walk first EC site situated in Tengah was awarded in June 2021 at a cost of $400mil ($603psf per share),” she adds.
She expects Plantation Close’s site to be sold at Plantation Close to receive a maximum bid of $330 million or $670 psf, with a goal launch price of $1,400 per square foot.
Tenders for Pantation Close EC site closed today, as did offers for the two remaining sites, a mixed-use parcel located at Tampines Avenue 11 and an site located at Marina Gardens Lane.