Setting a fresh record for EC land prices in Singapore, a consortium headed by Qingjian Realty has made a historic bid for an executive condominium (EC) site in Pasir Ris. Closing on August 1, the tender had the Qingjian-led group—which comprises China Communications Construction Co. and ZACD Group—offer $557 million for the 305,757 square foot site at Jalan Loyang Besar.
Topping the previous mark of $721 psf pr set by Sim Lian Group for an EC site on Tampines Street 62 in July 2023, this top bid corresponds to a land rate of $729 per square foot per plot ratio. With an expected maximum gross floor area of 764,395 sq ft, the site with a plot ratio of 2.5 may produce up to 710 new houses.
Given four proposals overall, the tender drew a lot of attention. Just 3.4% below the winning bid, a joint venture between CSC Land Group and Allgreen Properties at $538.89 million ($705 psf ppr) ranked second highest. Sim Lian Group and a joint venture between Hong Leong Holdings and Hong Realty turned in the third and fourth bids respectively.
Nava Grove by MCL Land and Sinarmas Land
Managing director of Qingjian Realty, Du Dexiang, showed hope for the project based on the company’s recent Tenet in Tampines performance. Emphasising Pasir Ris’s attraction as a mature estate undergoing rehabilitation, he especially mentioned the planned Cross Island Line’s improving effect on connectivity.
This EC site is noteworthy since it marks the first such land parcel the government has released in Pasir Ris in twelve years. Sea Horizon, the final EC development in the area, finished in 2016. Given the restricted availability in recent years, industry analysts feel there is pent-up demand for new EC projects in the eastern region.
OrangeTee & Tie’s CEO, Justin Quek, highlighted the site’s appealing qualities, including its close proximity to two main schools within one kilometre and Pasir Ris Park and Downtown East. A broad spectrum of customers should find appeal in these elements, particularly families with school-going children.
With three-bedroom units maybe costing $1.5 million, Marcus Chu, CEO of ERA Singapore, forecasts launch rates for future development to run between $1,600 and $1,700 psf. Given EC purchasers’ $16,000 monthly household budget limit, he underlined the need of maintaining reasonable costs.
Particularly for well-located developments in mature estates, the great interest in this EC site and the simultaneous conclusion of a Government Land Sale parcel tender in Queenstown highlight the continuous strong demand in Singapore’s residential property market.
