Tampines Executive condo site and Jalan Tembusu plot up for sale
Singapore – The Urban Redevelopment Authority (URA) and Housing Development Board (HDB) both released a new residential plot for sale. The land plots are in the confirmed list that was due for sale in the first half of the year of 2023.
The URA released a plot at Jalan Tembusu near the Tanjong Katong vicinity whereas the other plot by HDB is an executive condominium (EC) site at Tampines St 62.
Both plots are able to yield an estimate of 1540 residential units, according to the HDB and URA in a press statement.
Developers may be cautious on bidding
The plot on Jalan Tembusu drew some mix reaction amongst property analyst. They predicted that developers will likely be more careful when bidding at this site.
Chia Siew Chuin, head of residential research and consultancy at JLL Singapore said that this plot could attract fewer than 5 bids as developers may be cautious of the increase risk in high acquisition and construction cost amidst high interest rates.
However developers may also form a consortium to share the cost of bidding and reduce their risk, said Steven Tan CEO of OrangeTee and Tie.
Propnex’s head of research and content Wong Siew Ying said developers may be more guarded due to the 3 new upcoming condominium launches in the area, such as Tembusu Grand, The Continuum and Grand Dunman. These 3 projects can yield more than 2400 residential units.
The Jalan Tembusu plot size
The size of the Jalan Tembusu released by the URA is 20,572.1 sqm and a maximum gross floor area (GFA) of 72,003 sqm. It is located near many amenities such as speciality grocery stores along Tanjong Katong Road and Park Way Parade.
It is also close to educational institutions, Chung Cheng High School (Main) Tanjong Katong Girls’ School, Tanjong Katong Secondary School and Tanjong Katong Primary School.
Property Analysts prediction on the Jalan Tembusu plot
Property Analysts predicted that Jalan Tembusu plot may have up t 2 to 5 bidders and the successful tender price may range from $1250 to $1400 per square foot per plot ratio.
Huttons senior director of research Lee Sze Teck said , “Bidders will take reference to the Tembusu Grand launch as an indicator on the potential demand for homes in the location. The Katong area has not seen a project launch with a land size of more than 200,000 sqft in the last 19 years ever since Haig Court.
Executive condominium plot on Tampines St 62.
The Tampines St 62 parcel B was launched by the HDB. This land plot has a plot size of 28,000.2 sqm and a maximum GFA pf 70,001sqm.
Property Analyst believe that this plot can potentially attract up to 10 bidders with the highest bid price to be from $600 and $700 psf ppr or betweeen $452million and $512.4 million.
A healthy interest in this land plot is expected due to previous EC launch, The Tenet sold well amids the high interest rates, market sentiments and property cooling measures.
Moreover as prices between Executive Condominium and private property continues to climb and the prices widens, elligible buyers will likely choose to purchase an executive condominium due to the affordability factor.
Developers also sees EC as a safer option as there are more demand from first time buyers and HDB upgraders, Wong said Tenet, which is an executive condominium adjacent to Tampines St 62 Parcel B has 10 units left since their launch in December 2022. This indicated that there is very strong demand for EC in the area.
The tender for both land parcels , Jalan Tembusu and Tampines St 62 parcel B will close on 12pm on Jul 18.