Singapore’s first executive condominium (EC) land tender held under a new set of tighter rules has produced a record-high bid, with developers showing strong appetite for a Canberra Drive site despite expectations that the changes would lead to more cautious bidding.
The Housing and Development Board (HDB) tender attracted 13 bids when it closed on Oct. 1, the highest number for an EC site since the 17 bids received for the Sumang Walk site in Punggol in 2018.
The top offer of S$163.9 million, equivalent to about S$825 per square foot per plot ratio (psf ppr), came from a consortium comprising Santarli Realty, Heeton Holdings, Kay Lim Holdings and Sunray Group Holdings. The bid set a new record for EC land prices.
The result was notable because the Canberra Drive site is the first EC plot to be tendered after the Government introduced significant changes intended to make EC ownership more accessible to first-time buyers while moderating price pressures.
Record Bid Beats Previous Benchmark
The S$825 psf ppr bid surpassed the previous EC land record of S$794 psf ppr, set by Sim Lian Group for a Woodlands Drive 17 EC site in January 2026.
It was also significantly higher than the S$692 psf ppr paid for the previous EC site in Sembawang in 2025.
The second-highest bid for Canberra Drive came from Intrepid Investments and TID Residential at about S$159.4 million, or S$803 psf ppr.
The third-highest offer was around S$158.6 million, equivalent to S$798 psf ppr, from a consortium comprising Apex Asia Development, BHCC Development and HSB Developments.
The top bid was therefore only around 2.8 per cent above the second-highest offer, indicating relatively strong competition among the leading bidders.
At the other end of the range, Sim Lian Group submitted the lowest bid at about S$71.7 million, or S$361 psf ppr.
That created a substantial 128.5 per cent difference between the highest and lowest bids, highlighting the differing views among developers about the future profitability of EC projects under the new rules.
Developers Defied Expectations
The strong tender result came as a surprise to some property analysts.
Before the tender closed, analysts had generally expected developers to bid more conservatively because of the changes to EC rules. Forecasts for the top bid were around S$620 to S$660 psf ppr in some estimates, while other forecasts placed the expected range between S$630 and S$750 psf ppr.
The eventual S$825 psf ppr bid exceeded those expectations.
PropNex head of research and content Wong Siew Ying said the number of bids and the eventual top price were both significantly higher than expected.
One possible explanation is that developers may have believed other bidders would take a more cautious approach under the new rules, creating an opportunity for a developer willing to price more aggressively.
ERA Singapore’s key executive officer Eugene Lim similarly said the 13 bids demonstrated that developers’ interest in EC land remained strong despite the uncertainty surrounding the new policy framework.
What Changed Under the New EC Rules?
The Government announced several changes to the EC framework in May.
The most significant was the increase in the minimum occupation period (MOP) from five years to 10 years for new EC projects.
This means buyers will have to occupy their EC homes for a longer period before they can sell the property on the open market or buy another private residential property.
The Government also removed the Deferred Payment Scheme, which had previously allowed eligible buyers to defer part of their payments.
At the same time, the rules increased the allocation priority and quota for first-time buyers.
The changes were designed partly to give first-time Singaporean households a better chance of securing an EC unit while addressing concerns about rapidly rising EC prices.
National Development Minister Chee Hong Tat had previously said the measures were intended to help first-time buyers and that the Government hoped they would encourage developers to reduce their land bids and, ultimately, moderate EC prices.
The Canberra tender result suggests developers have not necessarily interpreted the changes as a reason to retreat from the EC market.
Higher Income Ceiling Could Boost Demand
Another factor that may have supported developer confidence was the Government’s decision to raise the monthly household income ceiling for EC buyers to S$18,000 in August.
The Canberra Drive tender was the first EC tender to close after the higher income ceiling took effect.
The change expands the pool of households eligible to purchase an EC, potentially offsetting some of the demand constraints created by the new 10-year MOP and the removal of the Deferred Payment Scheme.
Analysts said developers may have viewed the larger pool of eligible buyers as a reason to remain competitive when bidding for the site.
Canberra Drive Site Has Several Location Advantages
The site itself is considered attractive because of its location in Sembawang.
The 11,535 sq m, 99-year leasehold plot is expected to yield about 185 residential units.
It is roughly a 10-minute walk from Canberra MRT station on the North-South Line and is close to established amenities including Canberra Plaza, Sembawang Shopping Centre and Bukit Canberra.
Schools such as Sembawang Primary School and Wellington Primary School are also nearby.
The site is located opposite existing EC developments The Visionaire and The Brownstone, as well as near Canberra Residences.
The relatively small development size may also have appealed to some developers because it limits the amount of capital required compared with larger EC projects.
ERA’s Lim noted that the site’s location and smaller scale could have made it attractive to developers seeking to manage their exposure while entering the EC market.
New EC Could Approach S$1,900 psf
The record land price could have implications for the eventual selling prices of the EC units.
PropNex’s Wong estimated that if the top bid is awarded, the future project could potentially be launched at an average selling price of around S$1,900 psf.
That would put the development close to recent record levels for new EC launches.
New EC prices have risen substantially over the past decade.
According to CNA, the median price of new ECs from January to April 2026 was about S$1,843 psf, compared with S$782 psf in 2016. Recent projects such as Rivelle Tampines and Coastal Cabana also launched at average prices well above S$1,700 psf.
However, the eventual selling price, unit mix and launch timing for the Canberra Drive development have not yet been finalised.
The tender result represents the cost of the land and does not itself establish the eventual selling prices of the homes.
Strong Interest Despite Uncertainty
The 13 bids also reveal that developers have sharply different expectations about how buyers will respond to the new EC framework.
While some bidders were willing to pay more than S$800 psf ppr for the land, others submitted substantially lower offers.
The large spread between the highest and lowest bids suggests developers are still trying to determine how the 10-year MOP, removal of deferred payments and expanded first-timer eligibility will affect demand.
The Government’s higher income ceiling could provide some support, but buyers may also become more price-sensitive because of the longer occupation requirement and reduced payment flexibility.
For developers, this creates a delicate balance between securing attractive sites and keeping future launch prices within a range buyers can afford.
More EC Tenders Will Provide a Clearer Picture
The Canberra Drive result is only the first major test of developer sentiment under the new EC rules.
Another EC site at Admiralty Walk has already been launched for tender and is scheduled to close on Dec. 17.
Analysts are expected to watch that tender closely to determine whether the Canberra result represents a one-off response to an especially attractive site or reflects a broader willingness among developers to pay higher prices for EC land.
The Canberra Drive plot’s proximity to Canberra MRT, surrounding amenities and relatively manageable development size may have contributed significantly to the aggressive bidding.
Still, the record result demonstrates that the new rules have not, at least in this first tender, dampened competition for well-located EC sites.
With the winning bid now setting a new benchmark of S$825 psf ppr, the Canberra Drive project could become an important reference point for future EC land tenders — and potentially for the prices that buyers will face when the development eventually comes to market.
