Due to the Covid-19 pandemic, the tender period of a 99-year leasehold Singapore condominium site in Yishun Avenue 9 was given a six months extension by the Housing Board in a Government land sale, that is till midday on Oct 29. The Yishun site is situated inside 500m of a new mall in the locality called Junction 9. The parcel has a floor area of 60,240 sq m and is spread across 21,514 sq m. Around 600 residential elements can be set up in this area.
According to ERA Realty head, Nicholas Mak, this was done to get a larger bid on the land. He said that the extension will lead to the tender closing in October by which time the coronavirus situation may get under control thereby improving the market conditions. GLS tenders are generally given six to eight weeks.
In a media statement, HDB said that this will give extra time to the developers to judge the situation better in the wake of the outbreak. Mr Nicholas has said that even though there is unpredictability of the market right now, the work will start a couple of years later and by that time the Covid-19 crisis should be under control. Because of this, Nicholas is hopeful that the tender should get seven to ten big bids. He is anticipating that the most optimistic developers will bid as much as they would have before the coronavirus outbreak. He expects that the bids will be high and will range from $500 to $540 per square feet per plot ratio. This means that around $350 million could be garnered for the Yishun site.
This is the first residential land parcel of three such units to be put up for sale by the GLS program in the initial six months of 2020. One of the other two sites is in Jalan Anak Bukit which is a mixed site and can yield upto 865 units. This site have a link to the Beauty World MRT staion below the ground and a bus station. The other parcel is in Tanah Merah Kechil Link. This site is near the station and can hold 310 residential units.
Despite of what the demand is, the confirmed land sites are being set afloat by the timetable. The reserve sites however will be initiated only if there is enough market interest in a site or if the application by a developer is bankable.
The government noted the supply overhang and how the bids by the developers changed after the July 2018 cooling measures for property. It is therefore keeping a watch on the number of private residential plots in the GLS programme in the initial six months. After the policy change in September last year, the executive condominium housing units to be brought by a Singaporean household would require close to $16,000. Constructed by private developers, these condominiums are a mixture of public as well as private housing. Ranging from pools to multi-purpose rooms, there is a wide range of facilities available in these units.