Buyers Rejoice, As Another Executive Condo Site Is Tendered For In Tampines

Executive condominium (EC) units – a type of public-private housing hybrid - tend to be in strong demand owing to their relatively more affordable pricing and their appeal to owner-occupiers and HDB upgraders. Therefore, it is not unusual for EC launches to sell out or be close to being fully-sold within months from their launch date, such as Copen Grand EC and Tenet EC.

For prospective EC buyers who are keen on Tampines and have missed out on Tenet EC, good news beckons. The government has closed its public land tender for a brand-new EC plot right next to Tenet EC in Tampines Street 62.

The Tampines St. 62 (Parcel B) EC site – which attracted 9 bids - was awarded to Sim Lian Land Pte Ltd and Sim Lian Development Pte Ltd, entities of Sim Lian Group for $543.28 million. The land price translates to a land rate of $721 psf per plot ratio – a record high GLS land rate for an EC plot at the time of writing. Since developers can only put an EC project on the market 15 months from acquiring the plot, this latest EC project in Tampines is estimated to be launched for sale towards the end of 2024 or even in 2025.

Tenet EC which was launched in December 2022 had sold 72% of its 618 units at launch, and is now 99% sold, according to URA Realis caveat data as at 10 October 2023. PropNex’s observations suggest that EC demand in Tampines is strong, supported by a sizable residential population living in public housing flats in the surrounding neighbourhoods, within Tampines itself and also in Pasir Ris. The robust sales at Tenet EC will pave the way for new EC launches in Tampines.

Up-and-coming Tampines North
The latest EC site in Tampines St. 62 is also a stone’s throw from the Tampines Avenue 11 mixed-use GLS site which attracted three bids when its tender closed in June 2023. A consortium comprising UOL, SingLand and CapitaLand had submitted the top bid at $1.206 billion for the plot.

As the future Tampines Avenue 11 project will be an integrated development with bus interchange, community club, a hawker centre and other commercial offerings – this will provide much convenience to residents of the upcoming EC development. The integrated development will also be connected to the future Tampines North MRT station on the Cross-Island Line (CRL). The CRL will be constructed in phases, with the Tampines North station being part of the Stage 1 development, which will comprise 12 stations from Aviation Park to Bright Hill.

Families with school-going children will be glad to know that there are a number of schools around the area. They include Angsana Primary School, Elias Park Primary School, Tampines North Primary School, Meridian Secondary School, Tampines Meridian Junior College, Temasek Polytechnic, ITE College East, Singapore University of Technology and Design, and United World College of South East Asia (East Campus).

Tampines Regional Centre and East-side transformation
Established in 1992, the Tampines Regional Centre has continued to flourish. It is home to many large corporations, including financial services firms. The commercial hub also has plenty of retail and F&B options, such as the Tampines Mall, Century Square mall, Tampines 1 mall, Our Tampines Hub, and large format retail stores Ikea, Courts, and Giant hypermart, which are also minutes’ drive from the EC site.

Not far from the EC project, there are more recreation and retail offerings in Pasir Ris and in Changi, including Downtown East, upcoming retail offerings at Pasir Ris 8 mixed development, Jewel at Changi Airport, and Changi City Point. On this note, the nearby Changi Business Park and Changi Airport also offer employment opportunities closer to home, and offer a potential tenant pool for the EC owners when their EC units are eligible to be rented out after exiting the 5-year minimum occupation period (MOP).

Meanwhile, the ongoing transformation of Eastern Singapore means more exciting plans are afoot, including more jobs in the semi-conductor and aviation industries. Under the Urban Redevelopment Authority’s (URA) Master Plan 2019, the Changi Region looks set to be a bustling economic powerhouse with upcoming developments such as the future Terminal 5, Changi East Industrial Zone and Changi East Urban District.

Appeal of ECs
For home buyers, it can be said that buying an EC is a Singaporean privilege and such homes are significantly cheaper than other mass market condo launches. For instance, a new EC unit may be going for $1,500 psf, as opposed to a new OCR condo which is priced at around $2,000 to $2,100 psf. Hence, ECs are more affordable options for those who are eligible to buy them and they present an accessible entry point into the private housing segment

Buyers of new ECs also have a viable exit strategy. For instance, in areas within or close to large HDB estates, some of the flat owners may want to upgrade to private homes and could look into buying an EC unit on the resale market. Buyers of new ECs could potentially tap into this HDB upgrading demand pool when their ECs are permitted for resale after attaining the 5-year MOP or upon full privatisation after 10 years.

Due to the lower entry prices for ECs, many owners also tend to reap healthy gains upon the resale of their ECs subsequently. The average gains could hover at more than $400,000 for some projects.

The other attraction for buyers is that EC projects are as good as any other private condo developments in terms of their facilities, and the unit size also tend to be a bit more generous.

About the developer
Sim Lian Group is an award-winning property developer with experience spanning over four decades in the Singapore property scene. The group has built an outstanding track record in residential development and expertise in construction. It has a broad portfolio of residential, commercial, industrial, retail and mixed-use developments. Some of its most recent projects include The Botany at Dairy Farm, Hillion Residences, Treasure at Tampines, Treasure Crest and Wandervale.