HDB launches Sembawang executive condo site, Hougang mixed-use plot for tender; to yield over 1,000 homes

Business Times

6 days ago

[SINGAPORE] The government released two plots for housing in Sembawang and Hougang for tender on Thursday (May 29), to yield a total of some 1,100 new homes.
The Sembawang Road site for an executive condominium (EC) development spans 18,968 sq m (sq m), with a maximum gross floor area of 26,556 sq m for 265 homes.
In Hougang Central, a 46,898 sq m mixed-use parcel with maximum gross floor area of 117,245 sq m is expected to provide 835 condo units and 40,000 sq m of commercial space.
Market watchers expect strong demand for the new EC project, given the lack of supply of EC units in the north and high take-up rate of new launches.
Mark Yip, chief executive of Huttons Asia, noted that recent EC project launches have seen 'very strong demand', pointing to Aurelle of Tampines which sold out in a month.
It sold 682 of its 760 units on the first day of its launch in March, at an average selling price of S$1,766 per square foot.
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Yip reckons the Sembawang site will attract up to eight bidders and a top bid between S$600 and S$700 per square foot per plot ratio (psf ppr).
Demand for the project on the Sembawang EC site will likely come from Housing and Development Board (HDB) upgraders in Yishun, Sembawang and Woodlands, which have seen a shortage of EC developments in recent years, said ERA Singapore key executive officer Eugene Lim.
He expects about 3,500 HDB flats in Yishun and Sembawang to fulfil their minimum occupancy period between 2026 and 2029. 'This should create a healthy supply of potential upgraders for the launch of the future project.'
ECs have consistently been popular among upgraders due to more accessible pricing, even as its prices have climbed to new benchmarks.
In 2024, new homes ranging from 900 to 1,000 square feet (sq ft) in the Outside Central Region (OCR) recorded a 42 per cent difference in median prices between ECs (S$1.48 million) and private condos (S$2.1 million).
'This gap highlights the value proposition of ECs, particularly for HDB upgraders who meet the income ceiling of S$16,000. Hence buyers, particularly HDB upgraders, see value in ECs,' said Lim.
He noted that North Gaia, the most recent EC development in the north, sold out all of its units earlier this year.
'For the rest of the EC market, stock remains low, with only a few available units at Novo Place up for grabs,' he said.
However, Lim expects developers' interest may be diluted, with other OCR sites also on the table. Two sites were offered earlier in Woodlands and Bukit Panjang. 'These two sites share similar attributes to the Sembawang EC site, being located in burgeoning estates in the OCR.'
Moreover, the tender for the Sembawang site closes on Sep 11, the same date as another government land sale (GLS) tender closing for a large mixed-use site in Chencharu Close, also in the Yishun/Sembawang area.
'This batch closing could moderate developers' interest, as both are extremely attractive potential developments within a similar location in the north region,' said Lim.
The Hougang Central site marks the first GLS site offered for bidding in this area since the sale of an Upper Serangoon Road site in 2014. It is Hougang's first new launch since 2019, said Marcus Chu, ERA Singapore's chief executive.
Given the lack of new launches in Hougang for nearly five years, Chu expects the project to count on demand from HDB upgraders, as well as from residents living in nearby landed enclaves looking to rightsize.
The site is directly above Hougang MRT station and will yield about 40,000 sq m of commercial space – nearly double Hougang Mall's gross floor area of around 21,000 sq m, said Chu.
He added that the Urban Redevelopment Authority's master plan points to more housing in Hougang, with two nearby plots zoned for residential use, which can support future retail demand.
Huttons' Yip also noted that the mixed-use development will be the first major mall to serve the Hougang estate, and such projects sell well on launch weekends.
For instance, Parktown Residence in Tampines sold like hotcakes during its launch in February, with buyers snapping up more than 87 per cent of its 1,193 units.
Both Yip and Chu expect joint ventures from developers to bid for this site, given its large gross floor area of more than one million sq ft. Yip reckons the top bid could come in at S$800 and S$900 psf ppr.
The tender for the Hougang site closes on Dec 16.
HDB said three facilities in Hougang will close in phases to make way for the development of the Hougang mixed-use site.
They are the HDB Hougang Branch, which closes on Sep 1; the adjacent sheltered atrium, which closes end-September; and the surface car park at Hougang Avenue 10 that will close end-March 2026.
A new round-the-clock e-Lobby will open from Sep 1, after the closure of HDB's Hougang branch. The e-Lobby is equipped with self-help machines, such as HDB e-service kiosks and an AXS machine for residents to complete transactions.
The two parcels in Sembawang and Hougang, both 99-year-leasehold sites tendered by HDB, are on the confirmed list under the GLS programme for the first half of 2025.