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Hoi Hup, Sunway awarded tender for EC site in Tengah

Posted by admin on September 12, 2023
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Hoi Hup Realty and Sunway Developments emerged the highest bidder at the new executive condominium site in Tengah which attracted a total of 9 bidders. Amongst the contenders were entities links to heart weight developers such as City Developments Limited (CDL) Hong Leong, Capitaland Development and Frasers Property. 

The site located at Plantation Close was purchased at $348.5million which translates to $703 per square foot per plot ratio. This marks the highest record price for a executive condominium land. The land parcel which measures 16,441sqm has a maximum gross floor area of 46,036sqm is able to yield 495 new ec units. This plot will be in between the future Tengah Park MRT station and Bukit Batok West MRT station. Its proximity to the Jurong Lake Gardens and Jurong Innovation District and Nanyang Technological University is an advantage.

 

Highest record price

The bid by Hoi Hup- Sunway was estimated 6.2 per cent higher than the recent EC site bought by CDL which is located at  Bukit Batok West Ave 8 and 17% higher than the EC land acquired by CDL and MCL for their project named Copen Grand in Tengah Garden Walk near to Plantation Close.

The performances for executive condominium sales was remarkable with Copen Grand fully sold all their units within a month go their launch in October 2022. The units at Copen grand sold at an average of $1300 psf. 

Even Tenet at Tampines North sold 93% out of their 576 units after balloting by second time buyers, shared Lee Sze Teck, Huttons Asia’s senior director of data analytics. The project launched at $1360psf.

Wong Siew Ying Propnex’s head of research and content said Hoi Hup-Sunway smashed the record price geld by another EC site in Tengah which is being developed as Altura EC. It sold 61 per cent of the 360 units that they have at an average price of $1433 psf in August. 

Developers confidence in EC in Tengah

Lee Sze Teck from Huttons noted that the top bid of $703 clearly showed the confidence that developers have in Tengah and in the EC market. “This is astounding and higher than expected” added Justin Quek deputy chief executive officer of Orange Tee and Tie.

Eugene Lim, Era’s key executive officer estimated the launch price could be from $1450 and $1550psf.

Lee also said that with the increase in Additional Buyer Stamp Duty for a second property purchase, HDB upgraders will be more keen on getting an Executive Condominium. These buyers are given upfront remission.

 

new ec site Tengah

New bidding system

Bids received for the site were evaluated under a modified concept and price revenue tender system. 

Through this system, the interested tenderers will submit their concept proposals and tender prices separately. They are also given the option to submit and alternative bid on top of the one they made for base prefabrication, pre-finished volumetric construction (PPVC)

PPVC is a construction method where large modules complete with finishes and are manufactured factories and assembled on site. 

Alternative bidders could choose to use non PPVC technology or a hybrid of technologies to enhance the projects’s productivity. 

Credit Business Times

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