The Housing Development Board has launched a tender at Bukit Batok West Avenue 5 for an executive condo (EC) development from the Confirmed List for the first half of the 2022 Government Land Sales programme. The site is estimated to yield around 495 units.
This plot is nested within a new built-up area where many new flats and amenities are slated to be completed. The only existing EC project in Bukit Batok is The Dew, which was completed in 2003. The resale price of The Dew in the first five months of this year is S$1,024 psf.
The current land parcel is situated just beside the Bukit Batok West Avenue 8 GLS plot that was sold in March this year for a record bid of S$662 psf ppr, which smashed the previous record bid of S$659 psf ppr for the Tampines Street 62 EC site in July 2021. This site was hotly contested, drawing nine bids.
Although the previous site would be launched at least 6 months before this current site and will have a first-mover advantage, we anticipate that demand will still be healthy for this site due to a lack of supply in the area. Moreover, more flats are slated to reach MOP in the vicinity and there will be more upgraders looking for ECs in the area.
As the price quantum is not big, this parcel should fit the risk appetite of many developers. We are expecting between 7 and 9 bidders for this site, and we estimate that the land price for this plot could range between S$620 to S$700 psf ppr, with a selling price of S$1,300 to S$1,400 psf.