Huttons' comments on Yishun Ave 9 EC site and Tanah Merah Kechil site
The Yishun Ave 9 site (EC) attracted seven bidders and a top bid of $576 psf ppr from Sing Holdings.
The number of bidders and top bid are in line with expectations. Interest in ECs have been on the rise after the circuit breaker and there had not been a new EC project in Yishun since 2015.
Almost 7,000 flats have been completed between 2014 and 2016. This forms a potential pool of upgraders for the EC project when it is launch ready in 2022.
The Tanah Merah Kechil site drew a whopping 15 bidders and a top bid of $930 psf ppr.
The market has not seen such intense participation in a GLS tender since July 2017 where 15 bidders vied for a site at Woodleigh Lane. This is also the highest land bid ever for a GLS site in the Outside Central Region.
Dwindling unsold uncompleted units in the market led to an urgency among developers to replenish their land bank. There could be an increase in confidence among developers that the economy has seen its worst and will return to growth in 2021/2022. The palatable bid size for the plot could be another reason.