Upcoming Executive Condos in Tengah Estate Could Prove to Be Hot Property Again

Executive condo units at Copen Grand flew off the shelves when they were first launched in Tengah new town in October 2022. Soon, another new executive condo project is coming up in Tengah, and it will provide more housing options to eligible first-time homebuyers as well as HDB upgraders. In particular, it should excite prospective buyers who missed out on securing a desired unit at the nearby 639-unit Copen Grand EC which was fully snapped up a month from its launch.

The EC site tender at Plantation Close, under the Government Land Sales (GLS) programme closed on 27 June 2023, garnering 9 bids. That the site attracted strong interest from developers came as no surprise given the buoyant take-up at Copen Grand, which has laid down a marker for EC demand in the up and coming Tengah estate.

The tender was awarded on 11 September 2023 to the highest bid placed by the joint venture between Hoi Hup Realty and Sunway Developments, which submitted a top bid of $348.5 million (translating to $703 psf per plot ratio). The land rate of $703 psf ppr is nearly 17% higher than the $603 psf ppr achieved at the Copen Grand plot (Tengah Garden Walk GLS) which was awarded in June 2021. It is also the record land rate for a GLS EC plot thus far, smashing the previous record set by the Bukit Batok West Avenue 8 site at $662 psf ppr in 2022.

Based on estimates, the Plantation Close EC plot can offer about 495 executive condo units and will likely find favour among many buyers amidst the limited stock of unsold new ECs on the market currently. ECs are typically more attractively priced compared to private homes as they are a type of public-private housing hybrid. Through the years, EC owners have also turned in decent gains in the resale market, and the segment is expected to continue to thrive in 2023.

Potential to tap future upgrading demand in Tengah
Although this is the second EC site in Tengah, buyers are still in with a shout for first-mover advantage when they buy into the project. Over the years, the HDB has offered thousands new Build-to-Order (BTO) flats in Tengah. For instance, since 2022 to February 2023 alone, nearly 5,000 new BTO flats were offered for sale in Tengah by the HDB.

It is not inconceivable to think that many of the flat owners in Tengah will be considering to upgrade to a private home at some point, after they have achieved their 5-year minimum occupation period. By then, the ECs in Tengah would also be eligible for resale to local buyers – providing an exit strategy to the EC owners, who could be moving on to other residential properties as they further their own asset progression journey.

As the development of Tengah takes shape, there are plenty of reasons why home buyers should be excited about the new town. Tengah will be the first HDB estate that is planned with smart technologies town-wide from the get-go, and the designs of the housing districts will focus on green features and community-centric spaces, according to the HDB. Concepts like wellness, sustainability, and nature are expected to be a big part of Tengah.

Not far from the Jurong Lake District
Tengah’s exciting plans aside, the upcoming Plantation Close EC is also strategically positioned close to the Jurong Lake District (JLD) – envisioned as the largest mixed-use business district outside the central business district.

The JLD will comprise a range of commercial offerings, including offices and amenities, green spaces, recreation and tourism attractions, as well as more housing options. With the transformation of the JLD, could stand to benefit by living close to a thriving commercial hub. This offers not only convenience but may also potentially enable the future EC owners to rent out their units to tenants who are working in JLD when their ECs are eligible to be leased.

Connectivity
The EC project will be situated between two upcoming MRT stations on the Jurong Region Line (JRL), namely Tengah Park and Bukit Batok West stations, which could be ready in 2028. The JRL – with 24 new stations - will enhance connectivity for residents living in the West, with three interchange stations at Boon Lay, Choa Chu Kang, and Jurong East MRT stations. In addition, the site also enjoys easy access to the Pan Island Expressway, and main roads such as Jurong Road and Bukit Batok Road.

New schools and amenities
Schools that are within 1-km from the EC project include Jurong Primary, Princess Elizabeth Primary, and Yuhua Primary. Meanwhile, secondary and tertiary education options nearby include Bukit Batok Secondary, Jurongville Secondary, Fuhua Secondary, and Millennia Institute.

The site is also near to the future Anglo-Chinese School (Primary) which will be relocated from its existing spot in Barker Road to Tengah in 2030. Apart from ACS Primary, the Ministry of Education has also announced that there will be two more primary schools in Tengah: Pioneer Primary which is slated to open in 2026; and another yet-to-be named primary school which will be ready in 2028.

There are currently no ready-built amenities in Tengah but as the town develops, more facilities will be added to cater to residents’ needs. Meanwhile, there are a host of retail and dining offerings a short distance from the EC site, such as JEM, Westgate mall, and IMM mall in Jurong East.

About the developers

Hoi Hup Realty is a well-established local property developer founded in 1983. It has a strong track record in the development of residential properties, having successfully completed a diversified portfolio of property developments comprising private condominiums, landed housing, cluster-strata housing, executive condominiums, and mixed-use commercial developments. Some of their notable projects include Ki Residences at Brookvale, Terra Hill and The Continuum.

Sunway Group is a Malaysian conglomerate with diverse business interests in property, construction, education, healthcare, retail, and hospitality. In Singapore, Sunway Group's presence is primarily through its subsidiary, Sunway Developments Pte Ltd, which has been involved in numerous residential and commercial projects with its long-time partner, Hoi Hup Realty, since their first joint venture project in 2007.

Disclaimer:
While every reasonable care is taken to ensure the accuracy of information printed or presented here, no responsibility can be accepted for any loss or inconvenience caused by any error or omission. The ideas, suggestions, general principles, examples and other information presented here are for reference and educational purposes only.

This information contained herein is not in any way intended to provide investment, regulatory or legal advice or recommendations to buy, sell or lease properties or any form of property investment. PropNex shall have no liability for any loss or expense whatsoever, relating to any decisions made by the audience.

All copyrights reserved.