Site could draw fair amount of interest, given shrinking supply of new EC units, say analysts
An executive condominium (EC) site in Bukit Batok West Avenue 8 was launched for sale via public tender yesterday.
The 99-year leasehold site can potentially yield about 375 residential units. It was launched by the Housing Board under the Government Land Sales programme for the second half of this year.
The land parcel, which is about a 10-minute walk from Bukit Gombak MRT station, has a site area of 12,449.3 sq m and a maximum gross floor area of 37,348 sq m.
The maximum building height is between 60m and 70m Singapore height datum.
The site is near Bukit Batok Hillside Park and Dunearn Secondary School and also close to sites reserved for future high-rise residential developments.
Analysts said the EC site could attract a fair amount of interest from bidders, given the diminishing supply of new EC units in the market.
PropNex Realty chief executive Ismail Gafoor highlighted that ECs have always been popular among home buyers due to their more affordable prices.
Such units may appeal to first-time home owners or HDB upgraders who are least affected by the recently announced property cooling measures, he said.
He added that the development is located in an area where private housing supply is fairly limited, with the last private residential project there being the nearby Le Quest, which saw high take-up when it was launched in August 2017.
“The new EC project will be popular among HDB upgraders in the area looking for a private home within the same estate,” he said.
Mr Ismail said that as developers seek to replenish their land bank, he expects the relatively mid-sized parcel in Bukit Batok to receive between eight and 12 bids.
The top bid could range from $241.2 million to $261.3 million, reflecting a land rate of about $600 per sq ft per plot ratio (psf ppr) to $650 psf ppr.
Huttons Asia senior director of research Lee Sze Teck said the estimated bid for the EC site is between $580 psf ppr and $630 psf ppr, and there could be up to 10 bidders. It could see more interest from developers as buyers are not affected by the increase in additional buyer’s stamp duty, he added.
He noted that there are amenities in the area such as Le Quest Mall with its food and beverage outlets, as well as others in the upcoming Tengah estate.
The Bukit Batok site is about a five-minute drive from the Pan-Island Expressway.
Tender for the land parcel will close at noon on March 8 next year. Its closing will be batched with that of a residential site in Dairy Farm Walk that was launched by the Urban Redevelopment Authority in October.
The Dairy Farm site in Upper Bukit Timah, which can accommodate about 385 units, is also expected to garner quite a few bids from developers.
The land parcel is located in a quiet enclave close to nature, near the Bukit Timah Expressway, and around a 10-minute walk from Hillview MRT station.
It is also next to the German European School Singapore.
“Source: [HDB calls tender for EC site in Bukit Batok West] © Singapore Press Holdings Limited. Permission required for reproduction”