The Bukit Batok West Avenue 8 EC site is expected to yield about 375 residential units. Source: URA
Despite the introduction of new property cooling measures, market watchers expect the executive condominium (EC) site at Bukit Batok West Avenue 8 to receive keen interest from developers.
The Housing and Development Board (HDB) launched the 12,449.3 sq m site under the Confirmed List of the second half of 2021 Government Land Sales (GLS) programme. It has a maximum gross floor area of 37,348 sq m and a maximum building height of 60 to 70 m Singapore Height Datum (SHD).
The 99-year leasehold site is expected to yield around 375 residential units.
“We expect the EC site to attract a fairly healthy turnout of bidders, given the diminishing supply of new EC units in the market, as well as developers potentially seeking a less-risky development site to add to their land inventory,” said PropNex Realty in a statement.
“ECs have always been popular among homebuyers owing to their more affordable prices. In addition, ECs tend to appeal to the groups of buyers, such as first-time Singaporean home buyers or HDB upgraders who are least affected by the new cooling measures.”
The measures include higher Additional Buyer’s Stamp Duties (ABSD), tighter Loan-to-Value (LTV) limits and lower Total Debt Servicing Ratios (TDSR).
Huttons Asia pointed that a total of 7,788 three-room to five-room HDB flats completed between 2015 and 2018 “will offer a potential pool of HDB upgraders” for the EC project once it is launch for sale in 2023.
The site is situated within Bukit Batok’s suburban area where private housing supply is limited. The last private housing project within the area was Le Quest in Bukit Batok West Avenue 8, which witnessed hot take-up during its launch in August 2017.
PropNex believes the new EC project “will be popular amongst HDB upgraders in the area looking for a private home within the same estate”.
The site could attract up to 10 bidders, with bids ranging from $580 to $630 per sq ft per plot ratio (psf ppr), said Huttons.
PropNex, on the other hand, expects the bids to be moderate due to the “lack of amenities in this neighbourhood compared to the Tampines Street 62 EC site as well as ongoing concerns over rising construction costs amongst developers”.
The EC site at Tampines Street 62 set a new record in July 2021, with the top bid received at $422 million or $659 psf ppr.
Moreover, an adjacent EC plot at Bukit Batok West Avenue 5, which is set to be launched for tender in June 2022, could pose as competition for the site at Bukit Batok West Avenue 8. Notably, the site is larger and could yield 495 units.
With this, PropNex expects the top bid for the EC site at Bukit Batok West Avenue 8 to range between $241.2 million and $261.3 million, or about $600 to $650 psf ppr.
The tender for the site at Bukit Batok West Avenue 8 closes on 8 March 2022.
“The tender closing for this site will be batched with a residential site at Dairy Farm Walk, which was launched by URA in October 2021 under the Confirmed List of 2H2021 GLS Programme,” said HDB.
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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg.
Source : proppertyguru.com.sg/Property Market
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