Bukit Batok EC site to draw a lot of attention despite new curbs imposed on current EC North Gaia
It is believed that the Bukit Batok West Avenue EC location is anticipated to provide 350 residential units. Source: URA
Despite the introduction of fresh cool-down measures for properties, market observers anticipate that the executive condo (EC) site located at Bukit Batok West Avenue will receive the attention of developers. A very much similar land plot to North Gaia EC.
North Gaia EC brochure can be downloaded from their website, along with some other information such as floor plans, pricing, balance units etc.
The Housing and Development Board (HDB) has launched the 12,449.3 square meter site in the Confirmed List for the second quarter of 2021. Government Land Sales (GLS) program. It is the maximum gross floor area of 37,348 sqm, and a maximum height for buildings of 60-70 m. Singapore Height Datum (SHD).
The 99-year leasehold property is expected to produce around 350 residential units.
“We anticipate to see the EC site to be able to attract the attention of a healthy number of bidders, considering the declining supply of EC units on the market, and also developers looking for a safer development site to increase their land portfolio,” stated PropNex Realty in a statement.
“ECs are always popular with homebuyers due to their lower costs. Additionally, ECs tend to appeal to certain groups of buyers such as first-time Singaporean homebuyers or HDB upgraders, who are not affected by the latest cool measures.”
The measures include increased additional Buyer’s Stamp Duties (ABSD) and more stringent Loan-to Value (LTV) limits, and less Total Debt Servicing Rates (TDSR).
Huttons Asia pointed that a total of 7,788 three-room up to five-room HDB flats built between 2015 between 2015 and 2018 “will give a possible source of HDB upgraders” to the EC project when it will launched to be sold in 2023.
The location is located in Bukit Batok’s suburban zone in which private housing is scarce. The last housing project that was privately owned in the region included Le Quest in Bukit Batok West Avenue 8 which saw huge interest when it was launched in August of 2017.
PropNex believes that the proposed EC development “will be a hit with HDB upgraders who are looking for a home in the same community”.
The site is expected to draw as many as 10 bidders and bids could range between $580 and $630 per sq ft of plot proportion (psf ppr) according to Huttons.
PropNex is, on the contrary on the other hand, believes that for the proposals to be low in light of “lack of amenities within this neighborhood compared to Tampines Street 62 EC site and the ongoing concern regarding rising construction costs among developers”.
The EC site located at Tampines Street at 62 was the first to set a new record in July 2021 with the highest bid accepted at $422 million, or $659 psf per ppr.
Furthermore, an adjacent EC parcel located at Bukit Batok West Avenue 5 scheduled to go on auction in June 2022, could compete with the Bukit Batok West Avenue 8 site. Bukit Batok West Avenue. It is notable that the site is bigger and may produce 495 units.
Based on this, PropNex anticipates that the highest offer on the EC site located at Bukit Batok West Avenue will range in the range of $241.2 million to $261.3 million, which is roughly $600-$650 per square foot per.
A tender to purchase the land located at Bukit Batok West Avenue is due to close on March 8th, 2022.
“The tender closing date for this site will be accompanied by the residential area located at Dairy Farm Walk, which was announced by URA in October 2021 as part of the Confirmed List of the 2H2021 GLS Program,” said HDB.