As announced by the Housing Development Board (HDB) of Singapore on 29 December 2015, an Executive Condominium (EC) land parcel, with an area of 1.84 hectares which is situated at Yio Chu Kang Road will be put up for sale.
This only EC plot on the confirmed list under the 2H2015 Government Land Sales programme is expected to yield approximately 520 homes in total, and is the final land sale for year 2015.
Despite being welcome for most property developers due , a subdued interest is still expected for this land sale at Yio Chu Kang Road. Although the location of the site is not near any MRT Station, it’s still relatively close to amenities such as Hongang 1 Mall and also top educational institutes namely Rosyth School.
The prospective buyers for this upcoming Yio Chu Kang EC new launch, will mainly be drawn by its location within a matured estate, which has been rather rare lately.
Furthermore, due to the shortage of land supply (across the private residential and EC segments) imposed by the government, this land sale will be welcomed by most property developers. However, a subdued interest is still expected for this land sale at Yio Chu Kang Road due to the increasing amount of unsold new launch EC units in today’s market.
According to reports, the prices for EC land have fallen on average to approximately S$280 psf ppr in 2015, as compared to the average in 2014 which was S$350 psf ppr. Also, the total number of new private homes launched via the GLS programme have fallen by 24% year-on-year to only 16,590 in 2015.
Another 7,420 private homes are expected to be released into the market via the 1H2016 GLS programme, which is set to the lowest number in 9 years.
Video Report from ChannelNewsAsia on 2H2015 GLS Programme
Then again, given the reduced amount of land parcels being offered, it has resulted in keener interest from property developers with an average of 10 bidders seen for each private residential land sale and 7 for EC sites.
With quite a large number of unsold EC units in the market right now, it’s being expected that the bid for this Yio Chu Kang EC site could well ranged between S$260 psf ppr to about S$300 psf ppr, from not more than 8 bidders taking part.