HDB EC land bids in Singapore are skyrocketing because of the rising demand for affordable housing. While landed homes lock up more of your capital, they are also expensive to maintain. The MAS has been supporting owners by enforcing prudence through deferred mortgages and total debt servicing ratio curbs.
The recent rise in land prices has been particularly pronounced in Singapore’s d’Leedon neighbourhood, where family-sized units can cost up to $2 million. This has led many younger couples to settle for a resale HDB flat as their first home.
New home sales jumped during Covid 19. This was primarily due to two new launches. While take-up for private homes was generally tepid in September, new launches such as the Copen Grand EC in Tengah and Tenet EC in Tampines were key factors. Although limited private condo launches will likely dampen new home sales in October, the EC segment should continue to rise.
Demand for HDB EC land in Singapore soared during Covid 19. As a result, developers pushed up prices. One of the most popular types of new EC development in Singapore is the d’Leedon. The development is located near three MRT stations, the Jurong Lake District, and the Jurong innovation district. The development has sold nearly half its units on its first day of sales.
Sky Eden@Bedok is the first new residential project in Bedok Central in more than ten years. It is located close to popular primary schools and could appeal to families with young children. The development also offers two-bedroom unit layouts, making it a good choice for empty nesters.
The site is close to amenities like the MRT station and major employment hubs. There are also renowned schools within a short drive. Moreover, Sky Eden@Bedok has a central green corridor. This will connect residents to recreational spots nearby.
The project’s sales figures are impressive: During the launch period, 465 units were sold out, accounting for 73% of the total development. Moreover, the median launch price of the development’s units is over S$1,300 psf. Meanwhile, the remaining units were sold under the deferred payment scheme, adding three per cent to the total.
In contrast, state-owned plots in Lentor and Bukit Batok attracted significantly fewer bids. However, top bid prices were maintained despite the reduced number of bids. Analysts attribute this to higher construction costs and interest rates, as well as the rising supply of new homes in the area. They also point to the presence of executive condominium projects in the vicinity, which may put some developers off.
A new government land sales programme aims to increase private housing supply. The first land sale site is in Marina South, and SingHaiyi Group places the highest bid at S$1.28 billion. Another site in Pine Grove (Parcel A) sees a UOL-SingLand tie-up place the top bid. The price benchmark for city fringe condominiums continues to rise, with more than half of all transactions now exceeding S$2,500 psf.
The release of the Copen Grand HDB EC will allow second-time buyers to purchase up to 30 per cent of the EC. Bookings for the second-time buyers will begin one month after the EC launch. Interested second-time buyers can apply for e-applications on Nov 17 and 23. Then, on Nov 26, sales booking will commence.
The new development will feature a public transport system and eco-friendly features. The EC area is separated from the main town by a green belt, which gives the town a green feel. ECs are a hybrid of HDB and private condominiums. They are usually open to Singapore citizens during the initial launch phase. However, there are certain pre-requisites that must be fulfilled to qualify.