In the latest Government Land Sales (GLS) exercise, a joint venture between Hoi Hup Realty and Sunway Developments emerged victorious in the tender for a prime executive condominium (EC) site located at Plantation Close in Tengah, Singapore. Their successful bid of S$423.4 million, equivalent to S$701 per square foot per plot ratio (psf ppr), secured the sought-after land parcel amidst a backdrop of cautious bidding from developers.

Plantation Close GLS:

The Plantation Close GLS site attracted significant attention in the real estate market due to its strategic location within Tengah, one of Singapore’s upcoming residential towns. Positioned for future growth and development, the site offered an opportunity for developers to tap into the burgeoning demand for executive condominiums in the area.

Lower Than Expected Participation:

Initial industry projections anticipated up to eight bids for the plot, with estimates hovering around S$710 psf ppr. However, only four final bids materialized, indicating a degree of risk aversion among developers, possibly influenced by concerns regarding future supply in the area.

Leading Bid by Hoi Hup-Sunway:

Despite the subdued level of participation, Hoi Hup-Sunway’s bid stood out, commanding a 1.6% premium over the second-highest offer. Their established track record in successfully developing EC projects, combined with Sunway’s international expertise, positions them favorably for the forthcoming development.

Future of the Plantation Close EC Site:

Construction is slated to commence in 2025, with industry analysts predicting a launch timeframe within the same year. Market projections suggest potential selling prices ranging between S$1,400 and S$1,500 psf, driven by the burgeoning popularity of Tengah town and the limited supply of ECs in the vicinity.

Key Highlights:

• Hoi Hup-Sunway secures Tengah EC site with a bid of S$701 psf ppr.
• Lower-than-expected participation from developers underscores caution in the market.
• Projected launch in 2025 with potential selling prices of S$1,400-S$1,500 psf.
• Development poised to capitalize on Tengah’s growth momentum and scarcity of EC offerings.

The successful bid by Hoi Hup Realty and Sunway Developments for the Plantation Close GLS site not only signifies confidence in the future prospects of Tengah but also reflects the robustness of the executive condominium market in Singapore. As construction progresses and the project takes shape, it is expected to further enhance the vibrancy and appeal of Tengah as a residential destination.