Chencharu Close, Sembawang Road EC sites draw mixed developer interest

The sites attracted three and four bids, respectively.

The Housing & Development Board has closed the land tenders for Chencharu Close and an executive condominium (EC) site at Sembawang Road. The sites attracted three and four bids, respectively.

Justin Quek, CEO of OrangeTee & Tie, said the number of bids received for both sites was within expectations.

The CEO noted that the Chencharu Close may have seen healthy interest as it is the first private residential plot offered in the new Chencharu area. The future development is also likely to benefit from strong footfall from both new Chencharu residents and the surrounding established neighbourhood.

“In the upcoming Chencharu precinct, only approximately 2,000 private homes are planned, and this land parcel alone accounts for over 40 per cent of that supply,” Quek said.

Meanwhile, Quek noted that the last EC site sold in Sembawang was in 2019, developed into Provence Residence, which is now fully sold. With no new EC launches since, there is currently a shortage of EC supply in the area, according to July 2025 developers’ sales data.

“With around 10,000 4-room and 5-room flats estimated to reach MOP between 2021 and 2026 in Sembawang and Yishun, developers may be keen to tap on the expected strong demand from HDB upgraders,” he added.

Wong Siew Ying, Head of Research and Content at PropNex, said the sites drew comparatively moderate interest compared to recent tenders, noting that the Sembawang plot is further from transport and amenities, whilst the Chencharu site requires greater financial capacity due to its large scale.

“It is possible that some developers may be biding their time, waiting to toss their hat into the ring for other upcoming GLS sites, including attractive ones in Bukit Timah Road next to the Newton MRT station, in Dover Road, and Tanjong Rhu Road,” Wong said.

Tricia Song, CBRE Head of Research for Southeast Asia, attributed the lukewarm interest in the Chencharu Close to the size and complexity of the mixed-use project, which poses higher developmental risks.

“This follows healthy participation seen at the tender for Chuan Grove just last week, which received 5 bids, and is the lowest number of bids received for a tender since Media Circle Parcel B, which did not receive any bids during its closing on 29 April,” Song said.

The top bid of $1.013b ($980 psf ppr) came from a consortium of Evia Real Estate, Gamuda Berhad, and Ho Lee Group. It was almost 20% higher than the second-highest bid of $818 psf ppr, and 46% above the third bid of $670 psf ppr, suggesting disparate views amongst developers.

Leonard Tay, Head of Research at Knight Frank Singapore, said the top bid of $692 psf ppr for the Sembawang Road EC site came in slightly below expectations. Moreover, the site’s distance from Canberra MRT station and its irregular shape may have made developers more cautious.

“At top bid of S$692 psf ppr, this is the first time since September 2022 that a land rate for an EC parcel is under $700 psf ppr,” Tay said.

Demand could come from upgraders in surrounding towns such as Sembawang, Yishun, and Canberra, as well as young families and first-time buyers drawn to ECs as a more affordable alternative to suburban condominiums, he added.

Mark Yip, CEO of Huttons Asia, said that mixed-use sites are uncommon, with only eight sold through GLS in the past five years out of 47 sites. Meanwhile, buyers favoured living in mixed-use developments for the convenience and rentability, often making a beeline for such projects when they are launched

Meanwhile, unsold units in the Outside Central Region currently number around 2,000, the lowest among the three market segments, whilst over 8,000 BTO flats in the North will reach their minimum occupation period from 2023.

“Potential strong demand and low unsold units lower the risks to developers significantly and may explain developers' willingness to bid for the site,” he said.

On the Sembawang Road EC site, Yip noted that this is the first EC site in the Sembawang/Canberra area since 2019. Since 2023, more than 4,000 BTO flats in Sembawang have reached their five-year minimum occupation period, creating a pool of potential upgraders.

“Recent EC projects registered strong sales take-up of up to 90% during launch weekend,” Yip said. “Eligible EC buyers viewed ECs as a very attractive upgrading option at a competitive price point.

“Situated next to a landed enclave, it will be the first low-rise EC in Singapore,” he added.