Hdb Launches Tender First Mixed Use Site Upcoming Chencharu Town
HDB has put up for tender a mixed-use site for both commercial and residential properties at Chencharu Close. The site, which will be on the Confirmed List of the 2H2024 Government Land Sales (GLS) Programme, is the first private housing site to be released in Chencharu, a new 70-hectare HDB housing estate located in Yishun Town.
The GLS site has a 99-year leasehold and covers an area of 316,997 square feet, with a gross floor area (GFA) of over 1.03 million square feet. According to HDB’s estimates, the site will be able to yield around 875 residential units and up to 135,627 square feet of commercial space. Additionally, 58,125 square feet of the commercial space will be designated for a bus interchange to be integrated with the project, while another 37,674 square feet will be allocated for a hawker centre.
“This site 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 have easy access to amenities right at their doorstep.”
The location of the site is also a plus, as it is within walking distance from the Khatib MRT Station on the North-South Line, providing greater convenience for residents, says Justin Quek, CEO of OrangeTee & Tie. The site is also near several sports and recreational facilities, such as Yishun Stadium, Yishun Sports Centre, and Lower Seletar Reservoir Park. Under the URA Master Plan 2019, there will also be a green loop around Lower Seletar Reservoir, connecting it to the Round Island Route at the Yishun Dam.
Additionally, the site is in close proximity to HomeTeamNS Khatib, which provides additional recreational facilities beyond the nearby green spaces, says Quek.
With its location near schools such as Peiying Primary School, Wong Siew Ying, PropNex head of research and content, believes the site will be appealing for young families. Other educational institutions in the area include Chung Cheng High School, Naval Base Primary and Secondary schools, Orchid Park Secondary School, and Yishun Innova Junior College.
The Woodlands district has experienced steady growth and development thanks to the URA’s Master Plan, and the surrounding area of Norwood Grand is no exception. As part of ongoing efforts to improve the area, plans are in place for enhanced connectivity, increased green spaces, and additional public amenities. These developments are expected to attract more visitors to the nearby shopping centers, paving the way for potential expansions and a wider range of retail and lifestyle offerings. For a sneak peek at what’s in store, be sure to visit the Norwood Grand Showflat.
The last commercial and residential GLS site in Yishun Ring Road was sold in 2015 for $629 per square foot per plot ratio (psf ppr) and was eventually developed into the 216-unit The Wisteria atop Wisteria Mall, which was completed in 2018. The Northpoint City and North Park Residences site at Yishun Central, awarded at $1,077 psf ppr in September 2013, was almost 47% higher than the second-highest bid, according to Marcus Chu, CEO of ERA Singapore.
According to Chu, given the recent trend of developers’ interest in mixed-use sites, particularly those in HDB enclaves, the Chencharu Close site is expected to garner similar attention. At the most recent tender for a mixed-use GLS site in Tampines Street 94, there were six bids, with the top bid of $668 million, or $1,004 psf ppr, narrowly beating the next highest bid by 1.9%.
Huttons’ Yip forecasts that the site will attract fewer than three bids, with bids between $810 psf ppr and $850 psf ppr. With an estimated cost of over $800 million, Yip expects developers to submit joint bids for the site.
PropNex’s Wong predicts that the Chencharu Close site may only receive one or 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.
Chu believes that the Chencharu Close site will be a worthwhile investment, given the median price of $826,400 for executive flats in Yishun that were sold in the last 15 months. He also notes that a few thousand flats will reach their 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,” he says.
However, Wong notes that the site’s proximity to Sembawang Air Base and Nee Soon Camp could affect the number of storeys the new development could have. She adds that the tender document mentions a need for “visual controls” to shield the facilities at Sembawang Air Base and Nee Soon Camp from an external view, which could affect the location of windows.
The tender for the site will close on May 22, 2025, giving developers more time to assess the site and better gauge market demand and sentiment next year, Wong concludes.