Commentary on the closing of GLS site at at Sembawang Road (EC)

SINGAPORE, 11 September 2025 – The tender for the Executive Condominium (EC) Government Land Sale (GLS) site at Sembawang Road closed on 11 September 2025. In total, the site drew interest from four bidders, with the top bid of $197.8 million (or $692 psf ppr) submitted by Oriental Pacific Development Pte. Ltd.

The winning bid is just 4.0% higher than the next highest bidder, signalling tight competition for the site. The narrow margin demonstrates strong developer confidence in the potential of this EC site.

“Due to the site’s elongated shape and sloped terrain, the developer may need to make additional provisions for the site’s efficiency and unit layouts, as well as higher construction costs. As such, the bid of $692 psf ppr reflects this sentiment,” said Eugene Lim, Key Executive Officer, ERA Singapore.

The site falls within 1km of Ahmad Ibrahim Primary School and Yishun Primary School, with some units potentially within the 1km range of Xishan Primary School. These are locational attributes that appeal to potential HDB upgraders.

“Taking into account the 15-month wait-out period, the site is expected to launch in early 2027. Overall, there may be up to two EC launches in the North Region in 2027, which could bring about around 685 units.”

“The relatively lower EC land costs, compared to private homes, offer developers a more measured level of risk. However, with EC land costs rising, along with the Mortgage Servicing Ratio (MSR) and income cap limitations, ECs are gradually aligning more with the needs of second-time buyers seeking to upgrade from their HDB flats, while still remaining an aspirational option for first-time buyers willing to make a substantial down-payment.”

“The supply of EC sites has been modest, with only two sites launched annually since 2019. The recently introduced Otto Place has sold 93.3% of its units since its debut in late July 2025. The consistent uptake emphasises the underlying demand for ECs amidst a limited pipeline.”

“Demand for this future EC development will mainly originate from HDB upgraders in Yishun and Sembawang, although interest may also come from upgraders in neighbouring Woodlands, a town that has experienced a shortage of EC developments in recent years.”

“Between 2026 and 2029, approximately 3,500 HDB flats in Yishun and Sembawang are expected to fulfil their Minimum Occupation Period. This should create a healthy supply of potential upgraders for the launch of the future project.”

 

For media enquiries, please contact:

Lisha Rodney

Public Relations Manager, ERA Singapore

Email: [email protected]

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