A executive condominium site in Yishun has been released for sale by public tender, in what analysts noted is the first such sale in the area in about six years.
The 99-year leasehold site is located at Yishun Avenue 9 and can potentially yield about 600 homes, said the Housing and Development Board (HDB) in a press release on Thursday (Apr 30).
The 21,514 sq m site has a maximum permissible gross floor area of 60,240 sq m
To provide developers with additional time to make their assessment in view of the current COVID-19 situation, HDB said it will offer a longer tender period of six months. The deadline is at 12pm on Oct 29.
The land parcel was put up for sale under the Confirmed List of the Government Land Sales (GLS) Programme for the first half of this year.
Land parcels on the Confirmed List of the GLS programme are put up for sale regardless of market interest, while those on the Reserve List are triggered for tender only if a developer commits to bid at a price acceptable to the land sale authorities.
Mr Ong Teck Hui, senior director of research and consultancy at JLL, said that there is likely to be demand from buyers considering that the last executive condominiuim sold in the area was the Signature At Yishun site in May 2014.
However, bidders are expected to be cautious due to the COVID-19 outbreak.
“The HDB has allowed a long lag time of six months before the tender closes. If COVID-19 is well contained by then, the tender response could be more favourable, although we can expect bidders to be cautious,” said Mr Ong.
He expects between two and five bidders, with the top bid coming in between S$470 psf ppr and S$520 psf ppr.
“However, if COVID-19 is still not contained by tender closing with the economy deteriorating sharply, we can expect a minimal number of bidders and tender bids are likely to be below expectations,” said Mr Ong.
Construction projects are expected to be delayed amid a manpower crunch during the COVID-19 outbreak.
Thousands of foreign workers in Singapore – a number of whom work in the construction industry – have contracted COVID-19, making up a majority of the country’s cases in recent days.
Since Apr 7, all construction work has been halted as part of the Government’s circuit breaker measures to minimise further spread of the virus.
On Apr 21, all migrant workers staying at dormitories were told to stop work and remain at their place of residence until May 4.
The HDB has previously said that it will work with contractors to speed up construction of new flats after the circuit breaker is lifted.