Canberra Drive EC site launched for tender under tighter EC rules
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The site spanning 11,535 sq m, with a gross floor area of 18,457 sq m, can yield about 185 residential units, said the Housing Board.
ST PHOTO: MARK CHEONG
- A new Canberra Drive EC site tender, the first after tighter rules, tests developer response to changes like 90% first-timer allocation and no deferred payment.
- Property analysts predict developers will bid cautiously and buyers will be more price-sensitive due to new rules, potentially slowing initial sales.
- Despite rule changes, the well-located Canberra Drive site near amenities and future Sembawang redevelopment might still attract fair interest.
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SINGAPORE – A new executive condominium (EC) site in Canberra Drive was launched for tender on May 26, marking the first government land sales (GLS) site to be released after new EC measures were introduced earlier in May.
The site spanning 11,535 sq m, with a gross floor area of 18,457 sq m, can yield about 185 residential units, said the Housing Board in a statement on May 26.
Property analysts said the site will serve as an early test of how developers respond to the tighter EC rules announced on May 8, as they must now reserve 90 per cent of EC units for first-time buyers and extend the priority period from one month to two years.
The tighter rules also mean that developers can no longer offer the deferred payment scheme, which allows buyers to make a 20 per cent down payment and defer the rest of the payment until the project obtains its temporary occupation permit. Now, the normal payment scheme with progressive payments tied to construction milestones will apply to all EC buyers.
The minimum occupation period (MOP) will also be extended from five years to 10 years.
ERA Singapore key executive officer Eugene Lim said the tighter rules could see buyers becoming more price-sensitive.
“This should prompt developers to bid more cautiously, as higher land costs will make it harder to align EC prices with what buyers can realistically afford,” said Mr Lim.
Ms Wong Siew Ying, head of research and content at PropNex, said: “The allocation of 90 per cent of the EC units to first-timers for a priority period of two years may slow the initial take-up rate at the project, given that second-timers used to account for up to 30 per cent of sales within the first month of project launch.”
She added that with the longer MOP, developers may assume that EC demand could possibly soften slightly.
“Furthermore, EC buyers may also become more selective, focusing on locations and unit types that would best suit their longer-term housing needs,” she said.
However, Ms Wong anticipates the Canberra Drive EC plot “could potentially still draw fair interest, as EC demand in general remains sound owing to their relative affordability compared with other new private condos”.
Analysts noted that the Canberra Drive site is well-located, with many amenities nearby, such as schools, a polyclinic, a hawker centre and a sports hub.
The site is located opposite existing EC developments The Visionaire and The Brownstone, and is within a 10-minute walk to Canberra MRT station. It is also near Canberra Plaza and Sembawang Shopping Centre.
“Additionally, it is within a 1km radius of Sembawang Primary School and Wellington Primary School. These factors might appeal to young families or buyers seeking convenience within the neighbourhood,” said ERA Singapore’s Mr Lim.
Future residents could also benefit from long-term plans to redevelop Sembawang Shipyard after operations wind down in 2028. The area is expected to be transformed into a live-work-play district, bringing new recreational options and employment opportunities to the north, added Mr Lim.
According to ERA estimates, about 5,361 HDB flats in Sembawang, Yishun and Woodlands are expected to complete their MOP between 2025 and 2027, potentially providing a sizeable pool of upgrader demand for ECs.
Still, analysts cautioned that demand for future EC projects in the north could become increasingly fragmented due to a growing supply pipeline.
Two projects in Woodlands Drive 17 and Sembawang Road, launched under the first-half 2025 GLS programme, could add about 685 units and are expected to preview in the fourth quarter of 2026, said Mr Lim.
He noted that second-timers are also likely to show keen interest in these launches, as they are not covered by the new EC measures.
The last EC plot sold nearby was the Sembawang Road site, which fetched $692 per sq ft per plot ratio (psf ppr) in September 2025.
Analysts expect the Canberra Drive tender, which will close on Oct 1, to attract up to five bidders, with a bid land rate of around $620 psf ppr to $700 psf ppr.
“We could also see a wider bidding gap emerge as developers gauge the market before new EC pricing benchmarks take shape,” said Mr Lim.
