SINGAPORE – Two new sites – in Sengkang and Tampines – are available for executive condominium (EC) projects.
The Housing Board (HDB) has launched the first site at Fernvale Lane for sale by public tender on Monday (Dec 30).
Located in Sengkang, the site has been released under the confirmed list of the second half of 2019 Government Land Sales (GLS) Programme.
The second site at Tampines Street 62 has also been released for application; but under the reserve list.
This means that it will be put up for tender only if developers are interested.
In the announcement, HDB said both sites can potentially yield up to 1,100 resident units.
The Fernvale Lane land parcel has a site area of 17,129.9 sq m, a maximum permissible gross floor area of 47,964 sq m and a maximum building height of 56m above mean sea level. It is estimated to yield around 480 units.
The Tampines site is larger at 23,799.2 sq m, with a maximum permissible gross floor area of 59,498 sq m and a maximum building height of 63m to 64m above mean sea level. It is estimated to yield 595 units.
Both sites have a lease period of 99 years.
The tender for Fernvale Lane site will close at noon on March 3, 2020. It will be batched with two other residential sites at Canberra Drive which the Urban Redevelopment Authority (URA) launched last month, which means all three sites will close at the same time.
ECs are public-private housing hybrids built by private developers and typically come with amenities found in private condominiums such as swimming pools and multi-purpose rooms.
The income ceiling for Singaporean households to buy EC units is $16,000, up from $14,000, following a policy change in September.
While the Fernvale Lane site is not located near any MRT station, ERA Realty head of research and consultancy Nicholas Mak said it is near retail amenities such as Greenwich V shopping mall which may still prove popular among developers.
Ms Tricia Song, head of research for Singapore at Colliers International said she expects around seven to nine bids for the Fernvale Lane site, with the top bid possibly coming in at $260 million or $500 per sq ft per plot ratio (psf ppr). The projected end-selling price is around $950 to $1,000 psf.
Ms Christine Sun, head of research at OrangeTee & Tie said the project may attract HDB upgraders living in Sengkang and Punggol as more than 10,000 HDB flats have reached their five-year minimum occupation period in both areas this year.
“Some HDB owners will likely hope to upgrade to private housing and this Fernvale EC site may help to meet the upgrading aspirations of Singaporeans living in these two areas,” she said.
At least three ECs are expected to launch next year: Ola at Anchorvale Crescent, Parc Canberra at Canberra Link and one at Tampines Avenue 10.
Ms Sun added that developers are likely to see sales take-up of the EC at Tampines Avenue 10 and the overall demand before putting in an application to trigger the tender.
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