A mixed-use property at the new Chencharu housing estate is made available for purcha

A mixed-use property at the new Chencharu housing estate is made available for purchase by HDB

It is anticipated that the 99-year leasehold plot in Yishun will produce about 875 private residences.

September 26, 2024

CONDOsingapore.com

A mixed commercial and residential site at Chencharu Close in Yishun was put up for sale through a tender by Singapore's Housing and Development Board (HDB) on Thursday, September 26.

Approximately 875 private residential units are anticipated to be produced by the 99-year leasehold plot, which is on the confirmed list under the government land sales program for the second half of 2024.

A hawker centre and a bus interchange will be connected to the development. Along with up to 12,600 square meters (sq m) of commercial space that could be used for retail, it will also have community areas.

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The Chencharu Close site is 29,450 square meters, with a gross plot ratio of 3.26 and a maximum gross floor area (GFA) of 96,007 square meters.

A minimum of 74,507 square meters, or roughly 78% of the maximum GFA, will be reserved for residential use.

According to Mark Yip, CEO of Huttons Asia, this is the second-largest mixed-use project in the north of Singapore, behind the Frasers group's North Park Residences condominium and Northpoint City shopping centre.

According to ERA CEO Marcus Chu, demand may originate from HDB residents in Yishun or from occupants of older private residences in the area who wish to "upgrade" or renew their leases.

Chu pointed out that the median price of executive apartments in Yishun over the past 15 months was S$826,400, which could help those residing in HDB apartments with the down payment for a new private residence.

The new precinct

As the first private housing site in the new Chencharu housing precinct, the Chencharu Close location gives developers and homebuyers a first-mover advantage, according to Wong Siew Ying, head of research and content at PropNex.

Chu of ERA thinks that, like Tampines Street 94, there will be fierce competition for the mixed-use land parcel. When the tender for the Tampines mixed-use site closed last week, six bids were received, with the top two offers separated by a narrow 1.9% margin. He went on to say, "This shows a strong demand for mixed-use sites, especially those situated within HDB enclaves."

However, the development's "many requirements" and proximity to Sembawang Air Base could make construction challenging for developers, according to OrangeTee & Tie CEO Justin Quek.

According to Nicholas Mak, chief research officer at Mogul.sg, up to eight bids from developers at a price range of S$970 to S$1,100 per square foot per plot ratio (psf ppr) may be submitted in response to the tender.

He cautioned against interpreting the comparatively high number of bids as an indication that developers are becoming more optimistic about the land-sale market. "On the contrary, it is just another example of their risk aversion."

According to Mak, this is because homebuyers are more likely to accept mixed-use developments close to MRT stations than those that are farther away and less accessible from the city centre.

The development of the project can be partially financed by the proceeds from the sale of its residential use, and the developer can generate consistent rental income by running a suburban shopping centre with a "substantial consumer catchment," like Yishun, he said.

Considering the substantial expenditure of possibly more than S$800 million and the cautious market sentiment, Yip of Huttons anticipates fewer than three joint bids for the Chencharu Close plot, at between S$810 and S$850 psf ppr.

The new Chencharu precinct in Yishun, which includes the land parcel at Chencharu Close, is anticipated to have about 10,000 dwellings.

Earlier this year, Minister for National Development Desmond Lee stated that at least 80% of the residences in the 70-hectare estate would be designated for public housing.

On May 22, 2025, at 12 p.m., the Chencharu Close site tender will close.