Release more exec condo sites to meet bullish demand

WHILE some state land tenders this year drew a lukewarm response, the tender by the Housing and Development Board (HDB) for the 99-year leasehold executive condominium (EC) site that can yield some 560 homes in Tampines Street 95 drew five bidders and a top bid by Sim Lian of S$465 million or around S$768 per square foot per plot ratio (psf ppr).

The two highest bids at the tender that closed on Oct 24 broke the record of S$729 psf ppr for an EC site at Jalan Loyang Besar in Pasir Ris that was awarded to CNQC International, China Communications Construction Company and ZACD in August.

Based on the land price, new EC homes at Tampines Street 95 may be launched at S$1,600 psf or more. Might such pricing stretch buyer affordability? A new EC unit of around 980 square feet – roughly the size of an HDB four-room flat – could cost about S$1.57 million or nearly 8.2 times the annualised income of S$16,000 per month.