The Housing Development Board (HDB) of Singapore has recently made available two upcoming land parcels for executive condominium developments.
EC units bring to residents the dual advantage of both public and private housing as they are built on public plots by private developers. As such while the house ownership eligibility rules, amenity dues and charges remain under the public household system, the units typically feature several facilities such as a recreational clubhouse, gym, swimming and jacuzzi facilities, etc, which is the same as a private condominium.
As of September 2019, any legal resident of Singapore whose household income is $16,000 or above, can apply for purchasing EC units.
One of the two sites made available by HDB is a 184, 85 sq feet plot in Fernvale Lane in Sengkang. This land parcel has a maximum permissible gross floor area of 516,280 sq ft and has the potential to house an estimated 480 flats.
The Fernvale site is conveniently located near several retail facilities including the Greenwich V shopping mall. Hence even though the site is not close to any MRT station, it is expected to draw competitive bids. The site had the potential to bring in bids of about $260 millions which in turn translate to $500 psf ppr. If the figures hold true then the finished homes could sell for close to $1,00psf.
The Fernvale site is expected to catch the attention of current HDB residents in housing estates such as Punggol and Sengkang. Over 10,000 HDB flats in this area are more than 5 years old and have achieved their MOP. Experts opine that those wanted to make an upgraded shift are more likely to consider the EC site to avail of the low-cost private housing features.
The second EC site is located on Street 62 in Tampines. This site has an area of 256,172 sq ft. The maximum permissible gross floor area therein is about 640,421 sq ft. This plot has the potential to yield an estimated 595 finished homes.
There will be three other EC sites that will soon be available for sale in the new launch market. They are Parc Canberra which is located along Canberra Link, Ola (at Anchorvale Crescent which is in the Sengkang neighbourhood) and another development (name to be confirmed) situated along Tampines Avenue 10. These upcoming projects will likely be unveiling end of 2020.
Developers may note that the Sengkang site is currently available for sale by public tender. The tender closes at noon on 3rd March3, 2021. However, the Tampines Street 62 site is yet to be cleared out from the reserve list. HDB is still waiting for the required minimum number of interested developers to put it up for tender.
It is most likely that interested developers are waiting to see the market response for the upcoming EC development that is along Tampines Avenue 10, before making a decision whether to submit a tender for the new EC site along Tampines Street 62.
The current lease on each site is for a period of 99 years.