HDB has recently launched a mixed-use site for both commercial and residential use at Chencharu Close, which is now up for sale through a tender process. This site is included in the 2H2024 Government Land Sales (GLS) Programme under the Confirmed List, and it marks the first private housing development in the newly-established 70ha HDB housing estate of Chencharu within Yishun Town.
Spanning 316,997 sq ft and with a gross floor area (GFA) of over 1.03 million sq ft, this 99-year leasehold GLS site is estimated to accommodate around 875 residential units plus up to 135,627 sq ft of commercial space. Of the commercial space, at least 58,125 sq ft will be allocated for a bus interchange to be integrated within the project, while another 37,674 sq ft will be designated for a hawker centre.
“This development will be the second largest mixed-use project in the North, after North Park Residences and Northpoint City,” said Mark Yip, CEO of Huttons Asia. “The convenience of having amenities right at their doorstep will be a major advantage for the residents.”
Situated close to amenitiesThe site is just a short walk away from Khatib MRT Station on the North-South Line, making it extremely convenient for residents, according to Justin Quek, CEO of OrangeTee & Tie. Furthermore, the area is surrounded by various sports and recreational facilities, including Yishun Stadium, Yishun Sports Centre, and Lower Seletar Reservoir Park. Under the URA Master Plan 2019, there will also be a green loop around Lower Seletar Reservoir that connects it to the Round Island Route at the Yishun Dam.
Additionally, the site is also located near HomeTeamNS Khatib, which offers additional recreational facilities. This, combined with its close connection to green spaces, makes it an attractive option for young families. The site is also in proximity to various schools such as Peiying Primary School, Chung Cheng High School, Naval Base Primary and Secondary Schools, Orchid Park Secondary School, and Yishun Innova Junior College.
Estimated Bidding PricesAccording to Marcus Chu, CEO of ERA Singapore, the last mixed-use GLS site in the area was sold in 2015 for $629 psf per plot ratio (ppr). It was developed into the 216-unit The Wisteria, on top of the Wisteria Mall, which was completed in 2018.
In September 2013, the Northpoint City and North Park Residences site at Yishun Central was awarded at $1,077 psf ppr, nearly 47% higher than the second-highest bid. “Based on this, we can expect a similar level of interest from developers for the site at Chencharu Close,” said Chu. The recent tender for the mixed-use GLS site at Tampines Street 94, which received six bids and a top bid of $668 million or $1,004 psf ppr on September 19, further reinforces the strong demand for mixed-use sites, particularly within HDB enclaves.
When considering investing in a condo in Singapore, it is important to take into account the government’s property cooling measures. In order to maintain a stable real estate market, the Singaporean government has implemented various measures to discourage speculative buying. These measures include the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures may have an impact on the short-term profitability of condo investments, they also contribute to the long-term stability of the market, creating a safer investment environment. Singapore Projects should also be considered when making a condo investment decision.
Huttons’ Yip expects the Chencharu Close site to receive fewer than three bids, with developers being more cautious about their bids and offering between $810 and $850 psf ppr. Given the large outlay, estimated to be more than $800 million, he anticipates developers submitting joint bids.
PropNex’s Wong is even more cautious, forecasting that the site may only receive one to two bids. She expects the top bid to range from $930 million to around $1 billion, resulting in a land rate of $900 to $1,000 psf ppr.
The 608-unit The Estuary at Yishun Avenue 1 was launched in February 2010 and completed in 2013 (Photo: )Resale Prices of Current Mixed-Use ProjectsThe last new private condo launch within 1 km of Khatib MRT Station was the 608-unit, 99-year leasehold The Estuary at Yishun Avenue 1. Launched in February 2010, the project was completed in 2013. Caveats lodged from July to September showed resale prices ranging from $1,113 to $1,418 psf.
The 920-unit North Park Residences, located atop the Northpoint City mall, was launched in April 2015. The project saw 70% of 430 units released sold on its first weekend and was completed in 2018. From July to September, units at North Park Residences changed hands at prices ranging from $1,695 to $1,983 psf.
The Wisteria, another mixed-use project with 216 units located on top of the Wisteria Mall, sold more than 80% of its 138 units on launch weekend in March 2016. According to Chu, this “attests to the underlying demand from buyers for mixed-use development in developed estates.”
Estimated DemandHDB dwellers in Yishun looking to upgrade to a private home are highly motivated to dispose of their ageing flats, aged between 22 and 30 years, according to Chu. “Furthermore, based on data from the last 15 months, executive flats in Yishun were sold at a median price of $826,400,” added Chu.
However, PropNex notes that the Chencharu Close site is situated near the Sembawang Air Base and Nee Soon Camp, which may lead to building height control and thus impact the number of storeys in the new development. As per the tender document, there could be a need for “visual controls” at the site to shield the facilities at Sembawang Air Base and Nee Soon Camp from an external view, which, in turn, could affect the location of windows.
The tender for this site will close on May 22, 2025, giving developers more time to assess the site and better gauge market demand and sentiment next year, according to Wong.
Transaction at North Park ResidencesSource: EdgeProp BuddyTransactions at The WisteriaSource: EdgeProp BuddyTransactions at The Estuary Source: EdgeProp Buddy Check out the latest listings for North Park Residences, The Wisteria, The Estuary propertiesAsk BuddyMost unprofitable condo transactions in the past 1 yearView 2-bedroom floor plans for The WisteriaCondo rental transactions in District 27Generate price trend graph for resale condo in District 27Condo projects with most unprofitable transactions in District 27Most unprofitable condo transactions in the past 1 yearView 2-bedroom floor plans for The WisteriaCondo rental transactions in District 27Generate price trend graph for resale condo in District 27Condo projects with most unprofitable transactions in District 27