HDB has launched an executive condo (EC) site at Jalan Loyang Besar in Pasir Ris for public tender today, May 16. The 305,757 sq ft, 99-year leasehold site can be developed into a new 710-unit EC.

“We expect the site to be keenly contested by developers since it has been more than a decade since we saw an EC site in Pasir Ris,” says Marcus Chu, CEO of ERA Singapore. He points to the two EC sites awarded in 2023: Tampines Street 62 (Parcel B) and Plantation Close, which received nine bids each.

According to Ngiam Juyong, Huttons Asia project director, the last EC land parcel sold in the Jalan Loyang Besar area was the one next door. It was sold in 2012 and has since been developed into the 495-unit Sea Horizon, completed in 2016. Based on caveats lodged, the resale prices of units sold at Sea Horizon in 2024 averaged $1,240 psf, an increase of more than 50% from the launch price of around $800 psf in 2013.

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"Furthermore, there has not been a BTO [built-to-order] launch in Pasir Ris since 2020," says Ngiam. "The potential pool of pent-up demand from first-time buyers and HDB upgraders may drive sales of this upcoming EC."

Before Sea Horizon, the previous EC launched nearby was the 416-unit Watercolours at the corner of Pasir Ris Drive 3 and Pasir Ris Link. It was launched in 2012. The Sea Horizon plot was sold for $207 million ($331 psf ppr) in November 2012, while the Watercolours site was sold for $122.2 million ($291 psf ppr) in October 2011. Wong Siew Ying, head of research and content at PropNex, estimates the top bid for the EC site at Loyang Besar to be in the $680 psf per plot ratio (psf ppr) to $700 psf ppr range, or $520 million to $535 million.

According to Justin Quek, CEO of OrangeTee & Tie, of the nine EC land parcels awarded across the island since 2020, only two were in the East. One was for the site that has since been launched as the 618-unit Tenet EC. Launched in December 2022, 616 units have been sold at an average price of $1,382 psf, according to caveats lodged.

The neighbouring EC site at Tampines St 62 (Parcel B) saw Sim Lian Group emerge the winner with a top bid of $543.28 million or $721 psf ppr last October. The new 700-unit EC is expected to be launched sometime in 4Q2024.

OrangeTee expects the Loyang Besar EC site to receive five to eight bids, with the highest bid price of $650 to S750 psf ppr. Huttons' Ngiam likewise expects to see five to eight developers vying for the site, and the top bid to be in the range of $650 and $700 psf ppr.

Amenities nearby include White Sands, the upcoming Pasir Ris Mall, Pasir Ris Sports Hall, Pasir Ris Hawker Centre and Downtown East. The EC site is within 1km of two primary schools: Casuarina Primary School and Pasir Ris Primary School. It is near Pasir Ris MRT Station, an interchange station for the East-West and Cross Island lines in the future. The Cross Island Line will connect residents in the East to the West and North-eastern regions, such as Jurong Lake District, Clementi, Turf City, Ang Mo Kio, and Hougang, says PropNex's Wong.

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"With developers generally still cautious about the private residential market, we expect more interest to be directed to this EC plot," says PropNex's Wong. "Typically, EC projects are seen as safer bets as they usually enjoy strong demand, and EC buyers – being first-timers or HDB upgraders – are less affected by cooling measures."

ERA's Chu expects strong interest from residents in the East, especially HDB upgraders from Pasir Ris and Tampines. According to Chu, developers must also balance their land cost against buyers’ affordability, given the $16,000 cap on monthly household income. The household income cap can limit homebuyers’ capacity to purchase some of the larger four- and five-bedroom units, he notes.