Investigating the Low Land Rate of $626psf ppr of Bukit Batok West Avenue 5 EC Site Compared to the Avenue 8 Site

In recent years, the land rate of a number of Executive Condominium (EC) sites in Singapore has been declining. One of the most notable examples is the land rate of Bukit Batok West Avenue 5 EC site, which has dropped to $626 psf ppr. This is significantly lower than the land rate of the nearby Avenue 8 EC site, which is $927 psf ppr. In this article, we will investigate the reasons behind this difference in land rate and how it affects the prices of the two EC sites.

First, let’s take a look at the location of the two sites. The Bukit Batok West Avenue 5 EC site is situated off Bukit Batok Road, while the Avenue 8 site is located off Upper Bukit Timah Road. While both sites are within easy reach of the city center, the Avenue 8 site is easily accessible to the MRT stations at Beauty World and Bukit Batok, making it a more desirable location.

The second factor to consider is the land size. The Bukit Batok West Avenue 5 EC site is significantly larger than the Avenue 8 site, covering an area of 6,458 sqm compared to the 2,329 sqm of the Avenue 8 site. This has an impact on land rate as larger sites are more attractive to developers, and can be sold at a higher price.

Third, the land use of the two sites also has an impact on the land rate. The Bukit Batok West Avenue 5 EC site is currently designated for residential use, while the Avenue 8 site is zoned for mixed use development. Mixed use development projects tend to be more profitable for developers, as they can build a greater variety of units and attract more potential buyers.

Finally, the land rate of the Bukit Batok West Avenue 5 EC site is also lower due to market conditions. The Singapore property market is currently experiencing a softening trend, with prices declining in certain areas. The Bukit Batok West Avenue 5 EC site is situated in an area that has seen a significant drop in prices, making it less attractive to developers.

The difference in land rate between the two EC sites has a direct impact on the prices of the units. The Bukit Batok West Avenue 5 EC site is likely to be more affordable than the Avenue 8 site, as the land rate is lower and the area is less desirable to potential buyers. This means that buyers looking for an EC unit in the area will be able to purchase a unit at a more attractive price.

In conclusion, the land rate of the Bukit Batok West Avenue 5 EC site is lower than the rate of the Avenue 8 site due to its larger land size, land use designation and market conditions. This has a direct impact on the prices of the units, making the Bukit Batok West Avenue 5 EC site a more affordable option for buyers.

In recent years, the low land rate of $626psf ppr of Bukit Batok West Avenue 5 EC site compared to the Avenue 8 site has been the subject of much speculation. This article will investigate the possible factors that have resulted in this discrepancy and consider the potential implications of this situation.

The first factor to consider is the size of the sites. The Bukit Batok West Avenue 5 EC site is much larger than the Avenue 8 site, with the latter measuring only 2.5 hectares compared to the former’s 5.9 hectares. This larger size can be seen as a benefit in terms of potential for development, as a larger site can typically accommodate a greater number of units. However, it can also be seen as a disadvantage, as it can be more expensive to purchase a larger site, and the cost per unit can be higher.

The second factor to consider is the location of the sites. The Bukit Batok West Avenue 5 EC site is located in a more accessible area, with easy access to public transportation, whereas the Avenue 8 site is located in an area that is more remote and less connected to public transportation. This may be a factor in the lower land rate, as the Avenue 8 site is not as accessible and desirable as the Avenue 5 site.

The third factor to consider is the zoning of the sites. The Bukit Batok West Avenue 5 EC site is zoned for executive condominiums, meaning that it is suitable for more luxurious and upscale housing. This may be a factor in the lower land rate, as the Avenue 8 site is zoned for private residential housing, meaning that it is less desirable for development.

The fourth factor to consider is the current land use of the sites. The Bukit Batok West Avenue 5 EC site is currently used as a sports complex, meaning that it is already developed and ready for use. The Avenue 8 site, on the other hand, is currently vacant land, meaning that it requires more development before it can be used. This may be another factor in the lower land rate, as the Avenue 8 site requires more investment in order to make it suitable for development.

Finally, the fifth factor to consider is the development potential of the sites. The Bukit Batok West Avenue 5 EC site has a higher development potential than the Avenue 8 site, as it is zoned for executive condominiums and is already developed and ready for use. This may be the main factor in the lower land rate, as the Avenue 8 site is zoned for Bukit Batok EC private residential housing and has a lower development potential.

In conclusion, this article has investigated the low land rate of $626psf ppr of Bukit Batok West Avenue 5 EC site compared to the Avenue 8 site. It has considered the possible factors that have resulted in this discrepancy, such as the size and location of the sites, the zoning of the sites, the current land use of the sites, and the development potential of the sites. It seems likely that the higher development potential of the Avenue 5 site is the main factor in the lower land rate, as this site is already developed and ready for use, whereas the Avenue 8 site is zoned for private residential housing and has a lower development potential.