The recent government land sales (GLS) tender for an executive condominium (EC) site at Sembawang Road closed with a top bid of $692 per square foot per plot ratio (psf ppr), according to Knight Frank Singapore. This marks the first time since September 2022 that a land rate for an EC parcel has dipped below S$700 psf ppr. The previous instance was for a site at Bukit Batok Avenue 5.
The site’s distance from Canberra MRT Station and its irregular shape may have contributed to developers’ cautious bidding.
Leonard Tay, Head of Research at Knight Frank Singapore, noted that the successful developer might leverage the lower land cost to launch units at starting prices below S$1,700 psf. This could appeal to price-sensitive homebuyers, especially those familiar with the recent average EC price of S$1,700 psf at Otto Place, Tengah.
The demand for the Sembawang Road site is expected to come from upgraders in nearby HDB towns such as Sembawang, Yishun, and Canberra. These households view ECs as an affordable transition between public and private housing. Additionally, young families and first-time buyers may find the entry prices more attractive compared to other suburban condominiums.
Whilst the lower bid presents an opportunity for competitive pricing, Tay emphasised that final pricing will depend on various factors, including technical, material, and design considerations due to the site’s unique characteristics.
