Canberra Drive executive condo site is first to test market after EC rules tightened

[SINGAPORE] In what will be the first test of developer appetite for executive condominium (EC) projects following a fresh tightening of rules, the government has launched the tender for an EC site at Canberra Drive in Sembawang.

The 11,535-square-metre (sq m) parcel can yield about 185 units, with a gross floor area of 18,457 sq m.

The launch of the tender, which closes on Oct 1, comes after the government earlier this month tightened rules for the EC market amid heated demand for the 99-year leasehold housing hybrid.

In announcing the changes on May 8, Minister for National Development Chee Hong Tat said he hoped the new measures would “result in developers reducing their land bids and the prices for their ECs”.

The last EC site sold in the area was a Sembawang Road parcel which drew four bids. JBE-owned Oriental Pacific Development submitted the top bid of S$197.8 million, or about S$692 per square foot per plot ratio (psf ppr).

Analysts expect the Canberra Drive site to garner up to five bids, with the top offer in the range of S$600 to S$700 psf ppr.

“The Canberra Drive site may be the litmus test on developers’ confidence after the policy change,” noted Huttons Asia chief executive officer Mark Yip.

Eugene Lim, key executive officer of ERA Singapore, said: “Bidding for this site will be closely watched as it could serve as a benchmark for upcoming tenders, including Sembawang Drive and other potential sites in the H2 2026 (government land sales) programme.”

New EC sales and project pricing hit a high in April with the latest launch, Rivelle Tampines, selling 93 per cent of its 572 units at an average price of S$1,893 psf.

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In line with strong sales at recent launches, bids for EC project sites have climbed, reaching S$794 psf ppr in January 2026.

Under the new scheme, the minimum occupation period (MOP) for EC units has been extended to 10 years. Previously, the MOP before an owner could sell their unit was five years.

A deferred payment scheme (DPS) for new EC projects was also scrapped. In addition, the required quota of new units reserved for first-time buyers was raised from 70 per cent to 90 per cent, with the priority period extended substantially from one month to two years.

Without the DPS and with first-timers making up a larger share of initial new launch buyers, “future ECs may attract a more price-sensitive crowd”, said ERA’s Lim.

“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,” Lim added.

“We could also see a wider bidding gap emerge as developers gauge the market before new EC pricing benchmarks take shape.”

PropNex head of research and content Wong Siew Ying believes the Canberra Drive parcel could “still draw fair interest” given its locational attributes, as well as resilient EC demand due to the relative affordability.

The plot is close to Canberra MRT station, the Bukit Canberra integrated development, Sembawang Shopping Centre and several schools.

Wong noted that tight supply of unsold stock in new EC units could also spur developers to bid for the plot.

ERA’s Lim said: “In Q4 2026, two EC projects could make their debut in the region, namely those at Woodlands Drive 17 and Sembawang Road. Together, these developments could add an estimated 685 EC units in the north.”

He added that second-timers are also likely to “show keen interest” in these launches as they are not affected by the new measures, which prioritise first-timers for up to two years.

On top of these launches, another Woodlands Drive site and parcels in Miltonia Close, Sembawang Drive and Canberra Drive could contribute another 1,625 units to the regional pipeline.

“Over time, this considerable amount of new ECs may diffuse buyer interest among more new launches in the north,” said Lim.

“In a more competitive buyer environment, developers may also prioritise bidding on sites with clearer demand or stronger locational attributes.”

The Canberra Drive EC site is among the nine confirmed list sites under the government land sales programme for H1 2026.