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HDB releases executive condo sites in Sengkang and Tampines

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Sengkang plot launched for sale by public tender while Tampines site under reserve list

Two new sites - in Sengkang and Tampines - are available for executive condominium (EC) projects.

The Housing Board (HDB) has launched the first plot of land in Fernvale Lane in Sengkang for sale by public tender to interested developers.

The second site in Tampines Street 62 has also been released for application but under the reserve list. This means that it will be put up for tender only if developers are interested.

HDB said yesterday that both sites could potentially yield up to 1,100 residential units.

The Fernvale Lane site is 17,129.9 sq m, with a maximum permissible gross floor area of 47,964 sq m and a maximum building height of 56m above mean sea level. It is estimated to yield about 480 homes.

The Tampines site is larger, at 23,799.2 sq m, with a maximum permissible gross floor area of 59,498 sq m and a maximum building height of 64m above mean sea level. If there is enough interest from developers to proceed, home buyers can expect 595 units to be available when the project is completed.

Both sites have a lease period of 99 years each.

The tender for the Fernvale Lane site will close at noon on March 3 next year.

Executive condominiums are public-private housing hybrids built by private developers and typically come with amenities found in private condominiums such as swimming pools and multi-purpose rooms.

INCOME CEILING

The income ceiling for Singaporean households to buy EC units is $16,000, up from $14,000 following a policy change in September.

Although the Fernvale Lane site is not located near any MRT station, it should still prove popular among developers, said ERA Realty head of research and consultancy Nicholas Mak. This is because it is near retail amenities such as Greenwich V mall.

Ms Tricia Song, head of research for Singapore at Colliers International, said she expects between seven and nine bids for the Fernvale Lane site, with the top bid possibly coming in at about $260 million, or $500 per sq ft per plot ratio.

The projected end-selling price could then be between $950 and $1,000 per sq ft.

Ms Christine Sun, head of research at OrangeTee & Tie, said the project may attract HDB upgraders in Sengkang and Punggol, as more than 10,000 HDB flats have reached their five-year minimum occupation period in both areas this year.

"Some HDB owners will likely hope to upgrade to private housing, and this Fernvale EC site may help to meet the upgrading aspirations of Singaporeans in these two areas," she said.

At least three ECs are expected to launch next year: Ola in Anchorvale Crescent, Parc Canberra in Canberra Link and a development in Tampines Avenue 10.

Ms Sun said developers are likely to closely watch the sales for the Tampines Avenue 10 project and overall market demand, before deciding whether to put in an application of interest for the new Tampines site.

Property