As one contemplates investing in a condo, it is crucial to evaluate its potential rental yield. This is essentially the annual rental profit expressed as a percentage of the property’s buying price. In Singapore, the rental yields for condos can vary significantly based on factors such as location, property condition, and market demand. It is observed that areas in close proximity to business districts or educational institutions typically offer higher rental yields. Undertaking thorough market research and seeking guidance from real estate agents can offer valuable insights into the rental prospects of a particular condo. Additionally, checking out Singapore Projects can also aid in making an informed decision.
HDB has recently launched a mixed-use site in Chencharu Close for sale by tender. This site is part of the 2H2024 Government Land Sales (GLS) Programme and is the first private housing site in Chencharu, a new 70ha HDB housing estate in Yishun Town.
The 99-year leasehold GLS site covers an area of 316,997 sq ft and has a gross floor area (GFA) of over 1.03 million sq ft. It is estimated to yield around 875 residential units and up to 135,627 sq ft of commercial space. The commercial space will include a bus interchange of 58,125 sq ft and a hawker center of 37,674 sq ft.
According to Mark Yip, CEO of Huttons Asia, this will be the second largest mixed-use project in the North after North Park Residences and Northpoint City. With amenities right at their doorstep, residents will enjoy great convenience. The site is located within walking distance to Khatib MRT Station on the North-South Line, making it easily accessible. It is also close to sports and recreational facilities, such as Yishun Stadium, Yishun Sports Centre, and Lower Seletar Reservoir Park.
Additionally, there is a green loop around Lower Seletar Reservoir that will connect it to the Round Island Route at Yishun Dam under the URA Master Plan 2019. It is also situated near HomeTeamNS Khatib, which will provide additional recreational facilities. The site is also close to schools, such as Peiying Primary School, Chung Cheng High School, Naval Base Primary and Secondary schools, Orchid Park Secondary School, and Yishun Innova Junior College.
The last commercial and residential GLS site at Yishun Ring Road was sold in 2015 and awarded at $629 psf per plot ratio (ppr). It was developed into the 216-unit The Wisteria sitting atop Wisteria Mall, which was completed in 2018. According to Marcus Chu, CEO of ERA Singapore, the Northpoint City and North Park Residences site at Yishun Central was awarded at $1,077 psf ppr in September 2013, nearly 47% higher than the second-highest bid.
Chu expects a similar level of interest from developers for the site at Chencharu Close, given the strong demand for mixed-use sites, particularly those within HDB enclaves. Huttons’ Yip expects the site to attract fewer than three bids, with more cautious bids between $810 psf ppr and $850 psf ppr. Meanwhile, PropNex’s Wong forecasts that the Chencharu Close site may garner just one to two bids and the top bid to range from $930 million to around $1 billion, with a land rate of $900 to $1,000 psf ppr.
The last new private condo launch within 1km of Khatib MRT Station was the 608-unit, 99-year leasehold The Estuary at Yishun Avenue 1. Launched in February 2010, the project was completed in 2013. Resale prices have ranged from $1,113 psf to $1,418 psf. The 920-unit North Park Residences was launched in April 2015 and saw 70% of 430 units released sold on its first weekend. Completed in 2018, units at North Park Residences have changed hands at prices ranging from $1,695 psf to $1,983 psf in the last three months. The Wisteria sold more than 80% of the 138 units released on its launch weekend in March 2016.
The Chencharu Close site is near the Sembawang Air Base and Nee Soon Camp, and there could be building height control affecting the number of storeys the new development could have. Furthermore, there could be a need for “visual controls” to shield the facilities at Sembawang Air Base and Nee Soon Camp from external view, which could affect the location of windows, according to the tender document.
The tender will close on May 22, 2025, giving developers more time to assess the site and better gauge market demand and sentiment next year.