GLS Tender closing for the executive condominium site at Sembawang Road

Tender Closing for GLS Site

The top bid of $692 psf per plot ratio (ppr) at Sembawang Road is slightly under expectations. However, since the parcel is a fair distance from Canberra MRT Station and is oddly shaped, developers were perhaps more reticent in their bids. At top bid of S$692 psf ppr, this is the first time since September 2022 that a land rate for an EC parcel is under $700 psf ppr. That was previously when an EC site at Bukit Batok Avenue 5 was sold. As such, there is every chance that the successful developer could take advantage of the lower land cost to launch at starting prices of under S$1,700 psf, and capture the attention of price-sensitive homebuyers. Especially homebuyers who would have the current perception of ECs selling for about S$1,700 psf in their minds, which is the reported average during the recent launch of Otto Place at Tengah in July. However, the pricing would be dependent on technical, material and design considerations that include building on an irregular shaped plot next to the canal. 

Upgraders from surrounding HDB towns (Sembawang, Yishun, Canberra) represent a base of demand, with households aspiring to move into ECs as an affordable bridge between public and private housing. Young families and first-time buyers are likely to be drawn by relatively more affordable entry prices compared to other suburban condominiums.

Source: URA Space