There is a lot of interest in the Plantation Close EC property, with nine tenderers submitting proposals

The auction of the executive condominium (EC) site at Plantation Close closing the 27th of June generated huge interest, with nine tenderers making bids.

This site was the very first to implement an altered concept and the revenue-tender system. In this model, developers have the option to make an alternate bid in addition to an initial Prefabricated Prefinished Volumetric Construction (PPVC) bid. The alternative bid could use other technologies, or a combination of construction methods which result in a specific productivity improvements.

Grand Dunman response received a total of two bids, the winning offer being 20.3% higher than the lowest offer of $1.06 billion from City Developments, Hong Leong Holdings and TID, and Hong Realty.

PPVC bids automatically be considered for the tender evaluation. Any alternative bid must be accompanied by the writing up of a proposal to prove the viability of the proposition. The Concept Evaluation Committee chaired by the Building Construction Authority will assess whether the bids submitted by alternative bidders be able to meet the requirements for improving productivity before allowing them to be considered as qualified bids and proceed to the evaluation of the tender.

According to HDB the decision regarding the awarding to the bidder will only be taken after the tenders are assessed, and will be announced at a later date.

In the nine tenderers who bid for the site Two tenderers jointly owned by Hoi Hup Realty and Sunway Developments and an alliance between Qingjian Realty and Santarli Construction offered alternative bids.

The 176,907 sq. ft. EC site located at Plantation Close is expected to yield around 495 units. The plantation close site is not the first EC site that was launched in the near future Tengah town. One site that was released in the town of Copen Grand which was launched in October last year and was completely sold out in the month following. It is a site is also situated near another EC parcel that is part of the Confirmed List for 2H2023 GLS scheme that will produce 560 homes. The site is expected to be operational in November.

“There was a huge demand for Plantation Close,” says Lam Chern. Plantation Close EC site, in spite of the substantial rivalry from the two pending EC projects in Bukit Batok West Avenue 8 as well as Avenue 5 and the neighbouring Plantation Close parcel in the 2H2023 Confirmed List of GLS,” says Lam Chern Woon, head of research and consulting at Edmund Tie.

He believes the high level of attraction to the site may be due because of its proximity to the coming Tengah Park MRT Station on the Jurong Regional Line, which will improve connectivity to commercial hubs like Jurong Lake District, Jurong Innovation District and Tuas Port. Lam says that the success Copen Grand’s success Copen Grand has also likely increased the trust of developers that are bidding for the site.

Tricia Song, CBRE’s head of research Southeast Asia at CBRE, says that the tender submissions for the site surpass the four bids submitted during the previous EC site tender for Bukit Batok West Avenue 5,, which was granted in September 2022 at $336 million ($626psf per share). “But it is in line with previous EC tenders, such as the nine bids submitted for Bukit Batok West Avenue 5 EC site, Bukit Batok West Avenue 9 EC site which was awarded in March 2022 at a cost of $266 million ($662psf per person) and the seven bids submitted for the Tengah Garden Walk first EC site situated in Tengah which was awarded in June 2021 at a cost of $400mil ($603psf per share),” she adds.

She expects Plantation Close’s site to be sold at Plantation Close to receive a maximum bid of $330 million or $670 psf, with a launch target of $1,400 per square foot.

Tenders for Pantation Close EC site closed today, along with offers for the two remaining sites, a mixed-use parcel situated at Tampines Avenue 11 and the site located at Marina Gardens Lane.