The Housing & Development Board has just launched the land tender for a site Chencharu Close under the 2H2024 Government Land Sales (GLS) programme. The plot at Chencharu Close can yield around 875 residential units and 13,000 sqm of commercial space.
This will be the first private residential plot for sale within the new Chencharu area. This plot will contain a large commercial component, serving as the heart of the new precinct with a hawker centre, bus interchange, and retail amenities. The site is near HomeTeamNS Khatib, which will also provide additional recreational facilities beyond the close connection to green spaces. Peiying Primary School will be just next to the future development here. Moreover, the site will be a short walk away from Khatib MRT on the North-South Line, providing greater convenience to the residents.
The most recent site sold in the Yishun planning area was the site at Upper Thomson (Parcel B), which was awarded earlier this year in April 2024 to GuocoLand (Singapore) Pte. Ltd. and Intrepid Investments Pte. Ltd at a land price of about S$905 psf ppr. Prior to that, the next most recent land parcel sold was for an EC at Yishun Avenue 9 in 2020, which is now the EC project North Gaia. As of August 2024 monthly developer sales data, 553 out of 616 units have been sold, or 89.8 per cent of the total units. With the relative scarcity of land parcels released in Yishun, we may see some pent-up demand for private homes in this location, especially given the plans for the upcoming Chencharu area.
Between 2022 and 2024, almost 6,300 4-room and 5-room flats in Yishun and Sembawang would have reached MOP, and we would expect HDB upgraders from these areas to contribute to the demand base. Moreover, the commercial component of this development will see heavy footfall traffic from the neighbouring HDB flats, including both existing HDB flats and the new BTO projects in Chencharu itself. Eventually, Chencharu will have around 10,000 homes by 2040.
The positive attributes of this site should make it relatively more attractive. However, the numerous requirements that will be tied to the development may also make it more complex to build. We anticipate 2 to 4 bidders for this site, with a highest bid price of S$800 to S$880 psf ppr.