HDB launches tender for first mixed-use site in upcoming Chencharu Town

HDB has launched a commercial and residential mixed-use site along Chencharu Close for sale by tender. The site is under the Confirmed List of the 2H2024 Government Land Sales (GLS) Programme, and it is the first private housing site in Chencharu, a new 70ha HDB housing estate within Yishun Town. The 99-year leasehold GLS site occupies 316,997 sq ft and has a gross floor area (GFA) of over 1.03 million sq ft. HDB estimates the site can yield about 875 residential units and up to 135,627 sq ft of commercial space. At least 58,125 sq ft of the commercial space is to be allocated for a bus interchange to be integrated with the project. Another 37,674 sq ft commercial space is to be designated for a hawker centre. Read also: Hoi Hup-Sunway JV submits top bid of $1,004 psf ppr for Tampines St 94 GLS site Advertisement Advertisement "It will be the second largest mixed-use project in the North after North Park Residences and Northpoint City," says Mark Yip, CEO of Huttons Asia. "As it is a mixed-use site, residents will enjoy amenities right at their doorstep."

Close to amenities

The site is a short walk from the Khatib MRT Station on the North-South Line, providing greater convenience to the residents, says Justin Quek, CEO of OrangeTee & Tie. Sports and recreational facilities nearby include Yishun Stadium, Yishun Sports Centre and Lower Seletar Reservoir Park. A green loop around Lower Seletar Reservoir will connect it to the Round Island Route at the Yishun Dam under the URA Master Plan 2019. The site is also near HomeTeamNS Khatib, which will provide additional recreational facilities beyond the close connection to green spaces, adds Quek. Young families will find the site attractive, given its proximity to schools. For instance, Peiying Primary School is adjacent to the site, says Wong Siew Ying, PropNex head of research and content. Other schools in the area include Chung Cheng High School, Naval Base Primary and Secondary schools, Orchid Park Secondary School, and Yishun Innova Junior College.

Estimated bid prices

According to Marcus Chu, CEO of ERA Singapore, the last commercial and residential GLS site at Yishun Ring Road was sold in 2015 and awarded at $629 psf per plot ratio (ppr). It was developed into the 216-unit The Wisteria sitting atop Wisteria Mall, which was completed in 2018. Read also: Frasers Property-led JV bids $461 psf ppr for Media Circle long-stay serviced apartments site Advertisement Advertisement The Northpoint City and North Park Residences site at Yishun Central was awarded at $1,077 psf ppr in September 2013, nearly 47 % higher than the second-highest bid, points out Chu. Taking the cue from the most recent tender at the mixed-use GLS site at Tampines Street 94, Chu expects a similar level of interest from developers for the site at Chencharu Close. The Tampines Street 94 site received six bids and a top bid of $668 million or $1,004 psf ppr on September 19. It was just 1.9% higher than the next highest bid, demonstrating the strong demand for mixed-use sites, particularly those within HDB enclaves, adds Chu. Huttons' Yip expects the site to attract fewer than three bids, with more cautious bids between $810 psf ppr and $850 psf ppr. Given the large outlay, estimated to be more than $800 million, he reckons developers will submit joint bids. PropNex's Wong is even more cautious, forecasting that the Chencharu Close site may garner just one to two bids. She expects the top bid to range from $930 million to around $1 billion, with a land rate of $900 to $1,000 psf ppr.

Resale prices of existing mixed-use projects

The last new private condo launch within 1km of Khatib MRT Station was the 608-unit, 99-year leasehold The Estuary at Yishun Avenue 1. Launched in February 2010, the project was completed in 2013. Based on caveats lodged from July to September, resale prices have ranged from $1,113 psf to $1,418 psf. The 920-unit North Park Residences sits on top of Northpoint City mall and was launched in April 2015. The project saw 70% of 430 units released sold on its first weekend. Completed in 2018, units at North Park Residences have changed hands at prices ranging from $1,695 psf to $1,983 psf in the last three months, from July to September. Read also: Jurong Lake District master developer site not awarded; $640 psf ppr bid deemed 'too low' Advertisement Advertisement The Wisteria sold more than 80% of the 138 units released on its launch weekend in March 2016. "It attests to the underlying demand from buyers for mixed-use development in developed estates," says ERA's Chu.

Potential demand

Executive flats in Yishun transacted in the last 15 months saw a median price of $826,400, adds Chu. Furthermore, a few thousand flats will meet the minimum occupation period from 2023, providing a potential pool of upgrading demand. "HDB dwellers in Yishun looking to upgrade to a private home could be further motivated to dispose of their ageing flats aged 22 to 30 years." However, PropNex notes that the Chencharu Close site is near the Sembawang Air Base and Nee Soon Camp. There could be building height control, affecting the number of storeys the new development could have, notes Wong. Per the tender document, there could be a need for "visual controls" at the site to shield the facilities at Sembawang Air Base and Nee Soon Camp from an external view, which, in turn, could affect the location of windows, she adds. The tender will close on May 22, 2025. "It will give developers more time to assess the site and better gauge market demand and sentiment next year," says Wong.

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Recent transactions at The Estuary

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