HDB has launched an executive condo (EC) site at Admiralty Walk in Sembawang for sale by public tender. The 99-year leasehold Government Land Sale (GLS) site measures 138,782 sq ft and can potentially yield about 450 residential units.

This is the second EC land parcel to be launched for tender under the new EC framework, observes Mohan Sandrasegeran, head of research and data analytics at SRI.

On May 8, the government announced new restrictions on the EC market, including extending the minimum occupation period to 10 years, removing the Deferred Payment Scheme, and increasing first-timer priority at new EC launches.

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The first EC site tender after the announcement was a plot at Canberra Drive. The tender, which launched on May 26, will close on Oct 1. “As the first site to be offered under the revised framework, the Canberra Drive tender is expected to provide an important gauge of developers' appetite, pricing expectations and overall confidence in the EC market when it closes,” notes Sandrasegeran.

Eugene Lim, key executive officer at ERA Singapore, expects the Admiralty Walk site tender to be guided by the bidding response to the Canberra Drive site due to a possible overlap in buyers. “Both plots are located in the Sembawang planning area, and could draw from the same pool of EC first-timers and HDB upgraders living nearby,” he observes.

Still, Lim predicts offers for the Admiralty Walk site could be more measured compared to the Canberra Drive plot, given the former's location further away from an MRT station and major amenities. “With Sembawang MRT Station about 20 to 30 minutes away on foot, buyer interest could be tempered until future upgrades improve accessibility," he explains.

Lim also points out that buyer demand for the future project may be diluted due to the "sizeable pipeline" of EC launches in the North. These include upcoming projects on sites at Woodlands Drive 17 and Sembawang Road awarded last year that can yield an estimated 685 EC units. Two more EC sites sold this year — another plot at Woodlands Drive 17 and a plot at Miltonia Close — will introduce a further 990 EC units in the future.

“Given the expanding EC pipeline in the North, developers are likely to assess Admiralty Walk more selectively against other available GLS opportunities,” says Lim. ERA is estimating the site to receive up to three bids, with offers between $600 to $700 psf per plot ratio (psf ppr).

Meanwhile, Mark Yip, CEO of Huttons Asia, also expects up to three bidders for the plot, with a top bid between $530 to $630 psf ppr.

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He notes that while the Admiralty Walk site has advantages, such as its location adjacent to Northoaks Primary School, muted application rates for Build-to-Order projects launched thus far in the Sembawang North area point to “lukewarm” buyer interest in the precinct.

“This may lead to a longer time to sell out the [EC project on the Admiralty Walk site], given the new EC policy that allocates 90% of units to first-timers and lengthens the priority period for first-timers to two years,” he adds.

The tender for the Admiralty Walk site will close at noon on Dec 17.