Bukit Batok EC site launched for tender, market watchers foresee keen developer interest

The 99-year leasehold site can potentially yield about 495 residential units, said HDB. ST PHOTO: DESMOND WEE

SINGAPORE (THE BUSINESS TIMES) – An executive condominium (EC) site in Bukit Batok West Avenue 5 has been launched for sale by public tender.

The 99-year leasehold site, which comes under the confirmed list of the H1 2022 Government Land Sales programme, can potentially yield about 495 residential units, said the Housing Board on Tuesday (June 28).

This marks the third site launched for EC development within the span of a year, with the other two being Tengah Garden Walk and Bukit Batok West Avenue 8.

Spanning a land area of 16,623.7 sq m, the latest site can yield a maximum gross floor area of 49,872 sq m with a maximum building height of 60m.

Proposed amenities and facilities to be implemented by the successful tenderer include a 1.5m-wide footpath, a 2m-wide cycling path, as well as bus bays and shelters.

Analysts say that the site could draw keen interest from developers, partly because there are few EC options in the area.

The only existing EC project in Bukit Batok is The Dew, which was completed in 2003.
“The plot is nestled within a new built-up area where many new flats and amenities are slated to be completed,” said OrangeTee & Tie chief executive Steven Tan.

“Moreover, more flats are slated to reach MOP (minimum occupation period) in the vicinity and there will be more upgraders looking for ECs in the area.”

Mr Tan expects demand for the site to be healthy and draw about seven to nine bidders. “As the price quantum is not big, this parcel should fit the risk appetite of many developers,” he said.

Huttons senior director of research  Lee Sze Teck noted the Bukit Batok site’s close proximity to another EC site that was awarded in March to Qingjian and Santarli at $662 per square foot per ratio (psf ppr).

“Developers may be mindful of the potential supply in the area and hedge against risks. The estimated bid for the EC site is between $640 and $680 psf ppr and there could be up to eight bidders,” said Mr Lee of the Bukit Batok site.

In addition, there are around 8,000 owners of 3-room and larger flats which will fulfil the 5-year MOP from 2022 to 2024 who may choose to upgrade to an EC, a public-private hybrid.

Mr Lee added: “Buyers of EC units have the advantage of not being subject to cooling measures, wealth taxes and can opt for a deferred payment scheme.”

The tender for the Bukit Batok West Avenue 5 site will close at 12 noon on Sept 13, 2022.

Its closing will be batched together with two other URA residential sale sites at Lentor Central and Lentor Hills Road (Parcel B), which were launched for sale earlier in May this year.

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