Introduction
The authorities launched a 99-year leasehold Executive Condominium (EC) site at Senja Close for sale by tender. Located at Bukit Panjang, the 10,159 sqm site can yield about 295 residential units.
Not the most attractive site
The government will launch three EC sites for sale in the first half of this year. The site at Senja Close is arguably the least attractive of the three sites because it is less accessible than the other two sites to the city area to the nearest MRT station in the vicinity.
In addition, there are plans to build a Chinese temple next to the subject EC site at Bukit Panjang, Hence. the developer of the Senja Close EC project would need to design the blocks near the temple to minimise potential disamenities from the proposed nearby temple. For example, the developer could reduce the number of windows facing the temple.
Furthermore, the Senja Close site is located next to the busy Kranji Expressway, and residents in some of the EC units facing the expressway could be subjected to traffic noise and pollution. By comparison, the other two EC sites do not suffer such inconveniences.
Table 1: Executive Condominium land parcels to be launched for sale in 1H2025
Source: Mogul.sg Research. MND
The other two EC sites are located at Woodlands and sembawang and would be launched in April and May this year respectively.
Expected reaction from developers
Although the Senja Close EC site is not the most well-located land parcel, it could still attract 4 to 7 bids from real estate developers who are looking to acquire EC land to replenish their inventory.
The expteced healthy participation from the developers for EC land tender is mainly due to the strong demand from homebuyers for EC units as EC prices are cheaper than those of mass market condo. In the past twelve months, the median transacted price of suburban 99-year leasehold mass market condominium sold by developers is $2,309 psf. By comparison, the median prices of new EC units over the same period is 26.9% cheaper at $1,688 psf.
As a result of the strong demand from homebuyers, the stock of unsold EC units is dwindling. There are fewer than 150 launched and unsold EC units currently in the market.
However, most developers may not bid aggressively for this site as they will keep their power dry for the tender of the other EC sites as well as the condominium sites that will be launched in the coming months. The tender bids for the Senja Close EC site are expected to fall below the land rate of the latest EC land at Tampines Street 95 was sold by the government in November 2024 at $768 psf ppr.
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