Sembawang Road (EC) – Government Land Sale (GLS) Site Analysis

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.

 Table 1: Bidders for Sembawang Road EC GLS site

Source: HDB, ERA Research and Market Intelligence

Site Details

Location

Thiss EC site is nestled within the landed enclave of Sembawang Road and is located within 10 minutes’ walking distance from Canberra MRT Station on the North South line, which is just three stops away from Woodland’s interchange, providing a transit option to the North-South line and a bus interchange. Through the TEL, residents can reach Orchard in just under 35 minutes, and the CBD in about 45 minutes.

Major roads serving the site includes Sembawang Road, Yishun Avenue 2, and Gambas Avenue. These roads connect residents to the northern, north-eastern and central regions of Singapore.

Woodlands regional centre is also undergoing transformation into a new lifestyle and commercial hub, housing a range of office spaces, retail malls, and entertainment options just three stops away. These include existing points of interest such as Causeway Point shopping centre and Woodlands Civic Centre, alongside future developments to come.

Photo 1: Map of Sembawang Road

Source: URA, ERA Research and Market Intelligence

Price and Market Trends

Between 1Q 2020 and 1Q 2025, the median price psf of ECs in Sembawang, District 25, and OCR have increased across the board.

Table 2: All Sale Prices of Executive Condominiums

Source: URA as of 9 April 2025, ERA Research and Market Intelligence

ECs in OCR have seen considerable price growth compared to Sembawang. This could influence buyer demand for the future project at Sembawang Drive and possibly compel developers to bid more aggressively for the site due to its lower median price growth.

ECs are a popular choice amongst HDB upgraders

ECs have consistently been a popular choice among HDB upgraders. This is due to their more accessible pricing compared to private condos. Last year, new homes sized between 900 to 1,000 sqft in the OCR saw a 60% difference in median prices between ECs ($1.47M) and private condos ($2.36M). This gap highlights the value proposition of ECs, particularly for HDB upgraders who meet the income ceiling of $16K. Hence, buyers, particularly HDB upgraders, see value in ECs.

Apart from commanding lower prices than new private condos in the OCR, homebuyers have the additional flexibility of not needing to dispose of their existing home, prior to purchasing an EC. This is on top of the added benefit of ABSD remission for Singaporean purchasers.

Moreover, EC buyers may opt for the Deferred Payment Scheme (DPS), whereby they will only need to pay a deposit and defer their EC loan till after it has been completed. In this way, the buyers will not need to service two mortgages while waiting for their new home.

With no ABSD payable and the availability of the DPS, HDB owners will find it easier to upgrade to new ECs.

Potential Demand

Demand for this future EC development will come primarily from HDB upgraders in Sembawang, although we could see interest from upgraders coming from nearby towns in the North, such as Yishun and Woodlands.

Between 2026-2029 itself, we will see over 1,300 flats fulfil their Minimum Occupation Period in Sembawang, with about another 8,500 of such MOP flats in Yishun and Woodlands. This should create a healthy supply of potential upgraders for the launch of the future project.

There is a pent-up demand for new homes in Woodlands, which can be seen from the performance of Norwood Grand, located 5-minutes away from this GLS site. To date, the project has sold all of its 1-, 2-, and 3-bedroom units, selling 83% of its total stock at $2,080 psf. This shows a strong demand in the north for affordably priced private property, which should encourage developers to bid for the site.

Shortage of New ECs

As of 27 March 2025, the current supply of new EC homes is fairly limited, with fewer than 130 units available across five projects island wide. Though there are another two projects at Plantation Close and Jalan Loyang Besar slated to be launched this year, this incoming supply might still fall short of demand.

Table 3: New ECs available

Source: ERApro as of 7 Apr 2025, ERA Research and Market Intelligence

The last Executive Condominium project to launch in Woodlands was Northwave, launched in 2016. With no new EC launches in almost a decade, there is sure to be pent-up demand among for ECs in the area. This could compel developers to bid more competitively for the site to seize the opportunity to plug the gap in this segment of the market.

Moreover, North Gaia, the last EC to launch in the north region in 2022 has recently sold all its remaining units. The scarcity of new EC stock for north-dwelling homebuyers will be a key factor fuelling demand for the future project at Woodlands Drive 17.

Given the scarcity of fresh EC supply in the immediate vicinity, we may see competitive bidding activity for this site. The presence of a nearby MRT station, as well as amenities in neighbouring HDB estates and Woodlands Health Hub could further boost the site’s attractiveness to developers and potential buyers alike.

Table 4: EC units in the pipeline

Source: HDB, ERA Research and Market Intelligence

Developers have to be cautious because of buyers’ affordability

Due to the income ceiling of $16,000, as well as the Mortgage Servicing Ratio (MSR) and Total Debt Servicing Ratio (TDSR), the maximum loan a buyer can borrow is approximately $1.01 million. Amid rising EC prices, and a cap in loan quantum, EC buyers will now have to satisfy a larger initial cash outlay.

This may potentially deter upgraders to enter the EC market, instead opting for full private condominiums. Although they come with a higher price tag, buyers may only need to put a lower downpayment. Moreover, they can take a larger loan as private properties are only subjected to only the TDSR, and not the MSR.

Conclusion and Tender Closing Comments

Due to the site’s longish shape and sloped terrain, the developer may have to make more provisions for efficiency of the site and unit layouts as well as higher construction cost. As such, the bid of $692 psf ppr is reflective of this sentiment.

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.

Factoring in the 15-month wait-out period, the site is expected to launch in early 2027. In total, we may see up two EC launches in the North Region in 2027 yielding some 685 units.

The comparatively lower EC land costs, compared to private homes, ECs present developers with a more measured level of risks. But with EC land cost on the rise, coupled with the MSR and income cap limitation, ECs are gradually becoming more aligned with the needs of second-time buyers looking to upgrade from their HDB flats, while remaining an aspirational option for first-time buyers who are willing to shell out a hefty downpayment.

The supply of EC sites has been moderate, with only two sites released annually since 2019. The recently launched Otto Place has sold 93.3% of its units since its debut in late July 2025. The steady take-up highlights the underlying demand for ECs amid a limited pipeline.

Demand for this future EC development will come primarily from HDB upgraders in Yishun and Sembawang, although we could see interest from upgraders coming from neighbouring Woodlands as well, a town that has seen a shortage of EC developments in recent years.

Between 2026-2029 itself, we will see about 3,500 HDB flats fulfil their Minimum Occupation Period in Yishun and Sembawang. This should create a healthy supply of potential upgraders for the launch of the future project.

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