SINGAPORE’S Housing and Development Board (HDB) on Thursday (Sep 26) launched a mixed commercial and residential site at Chencharu Close in Yishun for sale via tender.
The 99-year leasehold plot, which is on the confirmed list under the second half of 2024 government land sales programme, is expected to yield some 875 private residential units.
The development will be integrated with a bus interchange and a hawker centre. It will also include community spaces and up to 12,600 square metres (sq m) of commercial space which may be used for retail.
The Chencharu Close site spans 29,450 sq m, with a maximum gross floor area (GFA) of 96,007sq m and a gross plot ratio of 3.26.
At least 74,507 sq m – about 78 per cent of the maximum GFA – will be set aside for residential use.
This makes for the second-largest mixed-use project in Singapore’s north, after Fraser Centrepoint’s North Park Residences condominium and Northpoint City shopping mall, said Mark Yip, CEO of Huttons Asia.
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Demand could come from residents of older private homes in the vicinity or HDB dwellers in Yishun, who are looking to refresh their leases or “upgrade” their homes, said ERA CEO Marcus Chu.
Executive flats in Yishun transacted at a median price of S$826,400 in the last 15 months – this could fuel the down payment of a new private home for those living in HDB flats, noted Chu.
New precinct
Wong Siew Ying, PropNex head of research and content, said the site at Chencharu Close offers developers and homebuyers a first-mover advantage, being the first private housing site in the new Chencharu housing precinct.
ERA’s Chu believes that competition will be tight for the mixed-use land parcel, similar to that of Tampines Street 94. The Tampines mixed-used site drew six bids when its tender closed last week, with a tight margin of 1.9 per cent between the top two offers. “(This exhibits) strong demand for mixed-use sites, particularly those located within HDB enclaves,” he added.
But the “numerous requirements” tied to the development, being situated close to Sembawang Air Base, may make building it complex for developers, said Justin Quek, CEO of OrangeTee & Tie.
Nicholas Mak, chief research officer at Mogul.sg, predicts that the tender may attract up to eight bids from developers at around S$970 to S$1,100 per square foot per plot ratio (psf ppr).
“This relatively high number of bids should not be mistaken as a sign that developers are regaining their confidence in the land-sale market,” he said. “Instead, it is another manifestation of their risk aversion.”
This is because such mixed-use developments near MRT stations tend to receive a better reception from homebuyers, compared to those that are less accessible and further from the city centre, added Mak.
Revenue from the sale of the project’s residential use can partially finance its development, while operating the suburban retail mall with a “substantial consumer catchment”, such as in Yishun, can yield steady rental income for the developer, he said.
Meanwhile, Yip of Huttons expects less than three joint bids for the Chencharu Close plot, at between S$810 and S$850 psf ppr, given the large outlay of potentially more than S$800 million and still-cautious market sentiment.
The land parcel at Chencharu Close is part of the new Chencharu precinct in Yishun, which is expected to offer around 10,000 homes.
At least 80 per cent of homes in the 70-hectare estate will be set aside for public housing, Minister for National Development Desmond Lee said earlier this year.
The tender for the Chencharu Close site will close at 12 pm on May 22, 2025.
