Tampines Avenue 11 mixed-use mega site and second EC site in Tengah launched for sale
A mixed-use mega site in Tampines Avenue 11 and the second executive condominium (EC) site in Tengah have been launched for sale under the Government Land Sales (GLS) programme, the Housing Board announced on Friday.
The mixed commercial and residential site in Tampines Avenue 11 and the EC location in Plantation Close in Tengah can potentially yield 1,685 residential units in total.
Both 99-year leasehold sites are rolled out for sale under the confirmed list for the second half of 2022.
To encourage developers to adopt innovative and productive construction methods, the HDB will pilot a modified concept and price revenue tender system for the Plantation Close EC site.
This means that interested developers have the option to submit bids of alternative construction methods besides the standard prefabricated prefinished volumetric construction (PPVC) technology, as long as they can yield the expected productivity levels.
PPVC bids will automatically qualify for the tender evaluation while any alternative bid will have to come with a write-up to demonstrate the feasibility of the proposal, said HDB.
The concept evaluation committee chaired by the Building and Construction Authority (BCA) will assess whether the alternative bids can “reasonably fulfil” the productivity improvement requirements and match up to PPVC technology before they can be considered as qualifying bids.
Developers are not expected to submit a detailed concept design proposal at this stage.
This is in line with the Government’s push to raise building productivity. In October, HDB announced a new target of 40 per cent construction productivity improvement by 2030, after reaching its previous target of a 25 per cent increase by 2020.
Ms Wong Siew Ying, head of research and content at PropNex Realty, said the second EC site in Tengah should draw considerable interest from developers, as it comes on the back of robust sales at the 639-unit Copen Grand EC in nearby Tengah Garden Walk.
Copen Grand, the first EC in the “forest town” of Tengah, sold 73 per cent of its total units over its launch weekend in October.
“The positive response at Copen Grand EC will help to boost confidence and give developers a more tangible sense of private housing demand in the new town,” said Ms Wong.
The Plantation Close site, which is expected to yield 495 units, is near Jurong Lake District and located between the future Tengah Park MRT station and Bukit Batok West MRT station on the Jurong Region Line.
Given its good location in an upcoming town and the low supply of new EC units in the market, Ms Wong expects the plot to attract five to six bids, with the top one estimated at around $297 million to $322 million, which translates to a land rate of about $600 to $650 per sq ft per plot ratio (psf ppr).
She does not expect the modified tender framework to impact developers’ interests, given the appeal of EC units and the good showing at Copen Grand EC.
The 50.7ha mixed-use mega site in Tampines, which will potentially yield 1,190 residential units and 14,000 sq m of commercial space, is likely to draw large developers or consortiums as it is a sizeable project, said analysts.
Huttons Asia senior director of research Lee Sze Teck noted that there are at least seven uncompleted Build-To-Order (BTO) projects and one EC one in the Tampines North area.
“There is a dearth of amenities such as malls in the area to serve the future needs of residents so the mixed-use site will inject much needed amenities to the area,” he noted.
The Tampines site will be integrated with a bus interchange, a community club and a hawker centre.
Mr Lee expects the top bid to cross $1,000 psf ppr, with a total quantum of more than $1 billion.
Tenders for both sites will close at noon on June 27, 2023, together with another mixed-use site in Marina Gardens Lane launched by the Urban Redevelopment Authority earlier in December 2022.
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