The Housing and Development Board (HDB) has launched an executive condominium (EC) site at Jalan Loyang Besar for sale via tender, under the government land sales programme’s (GLS) confirmed list for the first half of 2024.
Analysts expect healthy demand from developers looking to ride on any pent-up demand for ECs in Pasir Ris, seeing that the last EC launch in the area was Sea Horizon in 2013.
There has also been an absence of Build-To-Order flat launches in Pasir Ris since 2020, noted Huttons Asia project director Ngiam Juyong.
He added that Sea Horizon’s resale prices averaged S$1,239 per square foot (psf) in 2024, up 50 per cent from its launch price of S$800 psf.
The 99-year Jalan Loyang Besar site, which spans 28,405.5 square metres, potentially yields about 710 residential units, said HDB on Thursday (May 16).
Wong Siew Ying, PropNex’s head of research and content, expects healthy demand from HDB upgraders in the Pasir Ris and Tampines neighbourhoods.
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Demand for ECs in the east of Singapore could also be strong, as supply remains relatively limited, said OrangeTee & Tie chief executive Justin Quek. Only two out of nine EC plots awarded since 2020 are located in the east, he added.
Property analysts are projecting a top bid that ranges between S$650 and S$760 per square foot per plot ratio (psf ppr), with five to eight developers vying for the plot.
Marcus Chu, CEO of ERA Singapore, also expects a keen bidding contest. However, he noted that developers must balance their land costs against what purchasers can afford, as EC buyers are subject an income ceiling of S$16,000.
“This can limit (buyers’ capacities) to purchase some of the four or five-bedroom units,” he said.
He added that the Jalan Loyang Besar EC development, expected to be launched in early 2026, may coincide with improved economic conditions that could uplift buyers’ confidence.
Recent EC launches in the wider eastern region include Tenet in 2022. Another plot at Tampines Street 62 was awarded in October 2023 to Sim Lian Land and Sim Lian Development, at a bid of S$721 psf ppr.
The tender for the Jalan Loyang Besar site will close at noon on Aug 1, 2024. Its closing will be batched together with the residential site at Margaret Drive, which the Urban Redevelopment Authority will launch for sale later in May.
This move “could help dilute” the interest of developers, in alignment with the government’s “effort to drive more sustainable growth in new home prices”, said ERA’s Chu.
