Yio Chu Kang EC site draws 10 bids

Romesh Navaratnarajah • 18 Feb 2016

Map of the Yio Chu Kang Road residential site. Source: HDB

The tender for an executive condominium (EC) site at Yio Chu Kang Road closed on Thursday (18 Feb), after attracting 10 bids, according to the Housing and Development Board (HDB).

Launched for sale on 29 December 2015 under the confirmed list of the second half 2015 Government Land Sales (GLS) Programme, the approximately 198,302 sq ft site has a maximum gross floor area (GFA) of about 555,267 sq ft.

Property developer Hoi Hup Realty submitted the top bid of $183.8 million, which translates to about $331 psf on the GFA. Offered on a 99-year lease, the site is expected to yield around 520 EC units.

Desmond Sim, CBRE Research Head, Singapore and South East Asia, said: “It has been some time since an EC plot has been put up for sale in the Hougang and Yio Chu Kang area in the north-eastern part of Singapore. The site is located in a mature residential estate and is relatively close to the city. These attributes probably account for the high rate of participation and the competitive bids garnered for the plot.

“Its close proximity to Rosyth School gives developers further confidence that demand might stem from young couples planning to enrol their children in the school. These factors will contribute to the selling points of the future project.”

Other nearby amenities include the Hougang 1 shopping mall, Hougang Sports Centre and Nanyang Polytechnic. The area is served by the Hougang, Buangkok and Kovan MRT stations.

The HDB said a decision on the award of the tender will be announced at a later date after the bids have been evaluated.

Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg

Andy Chua

Feb 24, 2016

Hi pak on wong, may I know where did you get the construction cost of "about $200psf"? Also, would you like to elaborate more about the "simplicity of EC"? Do you mean EC facilities are inferior to condo ones? Maybe you can site some examples? It was mentioned that the "resale levy is another $50000". This is misleading as only 2nd timers currently staying in Executive units need to pay $50,000. First timers do not need to pay resale levy and 2nd timers staying in smaller units pay less. Those who sold their first subsidized flats long ago may need to pay much more as it will be based on the selling price back then plus interest. It is not fixed at $50,000 for everyone. This link might help: http://www.hdb.gov.sg/cs/infoweb/residential/selling-a-flat/additional-information

pak on wong

Feb 23, 2016

The resale levy is another $50000 which works out to be another $50psf on top of the selling price. There are many condos much cheaper, so why buy ec?

Eric Tiong Kwang Lang

Feb 23, 2016

A 99-year leasehold site situated at Hougang/ Yio Chu Kang area attracted 10 bids in a recently closed tender. The site was won by Hoi Hup Realty with a winning bid of $183.8 million or $331.02 psf ppr. The breakeven cost is estimated to be slightly above $700 psf and the targeted selling price will be close to $800 psf on average, said market experts. Source - Business Times

pak on wong

Feb 19, 2016

Construction cost will be about $200 psf, given the declining market conditions and the simplicity of EC. So adding the land cost of $331, the bulk of the cost is only $531. As the project will be launched at least 9months later, the property market will be soften further, so don't expect 10% margin anymore. I foresee below $700 to be more realistic.

Eric Tiong Kwang Lang

Feb 19, 2016

The selling price is likely to be no less than $750psf. I would expect the average selling price for this project to be in the high $700s possibly low $800s. The cost pf building the EC is easily per $250psf. Add in the bid price of $331 and some taxes easily $700psf cost to Developer. There need to be a min of 10% margin and at least another $15psf for marketing & comm to agency.

pak on wong

Feb 19, 2016

The ec price is coming down. Based on $331 psf land price, the selling price is about $700 psf. This is a much better location as compared to sengkang and Chua chu kang.

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Yio Chu Kang EC site draws 10 bids

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