The first Government Land Sales (GLS), a 99-year leasehold mixed-use commercial and residential site in the new Chencharu Town, closed on Sept 11 with three bids. Evia Real Estate, together with joint venture partners Gamuda Land and Ho Lee Group, submitted the highest bid of $1.012 billion, translating to $980 psf per plot ratio (ppr).

The second-highest bid of $845 million ($818 psf ppr) was submitted by a consortium led by Frasers Property, together with Mitsubishi Estate and Lum Chang Building Contractors. Sim Lian Group was in third place with $692.4 million ($670 psf ppr).

The top bid is 19.8% higher than the next bid at $818 psf ppr, and 46.2% higher than the third bid at $670 psf ppr, notes Wong Siew Ying, PropNex head of research and content. "The bid price gap may be due to varying assessments of the plot's prospects among developers, as it is a new housing area and relatively untested, given that there are few private condos nearby," she says. "The number of bids is within our expectations, as this is a sizeable plot with a maximum gross floor area of more than 1 million sq ft, and hence requiring a significant investment."

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At a top bid land rate of $980 psf ppr, PropNex estimates the average selling price for the project to be above $2,300 psf.

Though below recent land bids in the Outside Central Region (OCR), the top bid of $980 psf ppr “is reflective of the more complex site-specific requirements, including the need to build a hawker centre and bus interchange, when compared to other attractive GLS sites, rather than a broader shift in developer sentiment,” says Marcus Chu, CEO of ERA Singapore.

Mark Yip, CEO of Huttons Asia, points out that Evia Real Estate and Gamuda Land were also joint venture partners in the 578-unit Gem Residences in Toa Payoh, launched in 2016; and the 548-unit executive condo, Ola in Sengkang, launched in 2020. The site at Chencharu Close marks the joint venture partners’ first mixed-use project, in which they are joined by Ho Lee Group.

The GLS site is the first mixed-use development at Chencharu, a new 70ha HDB housing estate within Yishun Town. Nearby are also sports and recreational facilities, including Yishun Stadium, Yishun Sports Centre, and Lower Seletar Reservoir Park.

Sitting on a site area of close to 317,000 sq ft, the site has a plot ratio of 3.26. It can be developed into a mixed-use development with about 875 private residential units and 135,627 sq ft of commercial space. About 37,674 sq ft of the site’s commercial space is to be designated as a hawker centre, and another 58,125 sq ft of the commercial space is to be allocated for a bus interchange to be integrated with the project. The development is a five-minute walk from the Khatib MRT Station on the North-South Line nearby.

Before this site, the last mixed-use development in the vicinity was the one at Yishun Avenue 4, which was awarded in 2015. It has since been developed into Wisteria Mall and The Wisteria residential units, says Mohan Sandrasegeran, head of research and data analytics at SRI. “In comparison, the new Chencharu Close GLS site enjoys a distinct locational advantage, being positioned closer to Khatib MRT station,” he adds.

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The top bid price of $980 psf ppr is also 10.7% higher than the most recent comparable mixed-use site with similar scale and requirements (including a bus interchange and a hawker centre) at Tampines Avenue 11. The site received three bids and was awarded for $885 psf ppr to a JV between UOL Group & CapitaLand in July 2023, when market sentiment was weaker prior to interest rate cuts, says Tricia Song, CBRE head of research for Singapore and Southeast Asia. The site was later launched in February 2025 as the 1,193-unit Parktown Residences and saw robust take-up amid lower interest rates, with 1,041 units, or 87% of the total, sold at an average price of $2,360 psf over its launch weekend.

Other more recent mixed-use comparables include Tampines Street 94 (585 units), which received six bids and was awarded for $1,004 psf ppr in September 2024 to a joint venture between Hoi Hup Realty and Sunway Developments, adds CBRE's Song. However, the site is smaller and does not require integration with a bus interchange and hawker centre, she notes.