Commentary on the tender closing at HDB mixed-use site Chencharu Close

By Tricia Song (宋明蔚), Head of Research, Southeast Asia, CBRE

Despite strong take-up at recent new launches and better-than-expected economic performance, interest was lukewarm at the tender for the mixed-use site Chencharu Close (875 units) which closed today (11 Sep). 3 bids were received but with a top bid price above expectations.
 
This follows healthy participation seen at the tender for Chuan Grove (2) (505 units) just last week (4 Sep) which received 5 bids, and is the lowest number of bids received for a tender since Media Circle Parcel B which did not receive any bids during its closing on 29 Apr 2025 when developers chose to move to the sidelines following the announcement of tariffs in early April.
 
Chencharu Close (875 units) is the first private site released in Chencharu, a new housing estate within the Yishun HDB Township and would be integrated with a hawker centre and bus interchange. With a total GFA of more than 1 mil sq. ft., it will be the second largest mixed-use project in the North after North Park Residences and Northpoint City. Its large size and complexity as a mixed-use project pose higher developmental risks for developers which could be the reason for the subdued response in today’s tender.
 
The top bid price of $1.013 bn ($980 psf ppr) was submitted by a consortium between Evia Real Estate, Gamuda Berhad and Ho Lee Group. It was almost 20% higher than the second highest bid of $818 psf ppr, and a sharp 46% above the third and last bid of $670 psf ppr, indicating disparate sentiments for the site among the bidders.
 
The top bid price of $980 psf ppr is also 10.7% higher than the most recent comparable mixed-use site with similar scale and requirements (including a bus interchange and a hawker centre) at Tampines Avenue 11 which received 3 bids and was awarded for $885 psf ppr to a JV between UOL Group & CapitaLand in Jul 2023 when market sentiment was weaker prior to interest rate cuts. The site was later launched in Feb 2025 as Parktown Residence (1,193 units) and saw robust take-up amid lower interest rates, moving 1,041 units or 87% of total units at an average price of $2,360 psf over its launch weekend in Feb 2025.
 
Other more recent mixed-use comparable include Tampines Street 94 (585 units) which received 6 bids and was awarded for $1,004 psf ppr in Sep 2024 to a JV between Hoi Hup Realty and Sunway Developments. This site is smaller and does not require integration with a bus interchange and hawker centre. 
 
In terms of geographical location, the nearest comparable with a similar size would be Yishun Avenue 2 / Yishun Central 1 (920 units) which saw 5 bids and was awarded for $1,077 psf ppr in Sep 2013 to entities under Frasers Property. The plot now houses shopping mall Northpoint City and North Park Residences (920 units).

Project Name	Total no. of units	Units sold in 2024-YTD 2025	Median price in 2024 to YTD2025	Tenure	Completion year
ORCHID PARK CONDOMINIUM	615	42	981	99 yrs from 01/09/1991	1994
THE ESTUARY	608	43	1,301	99 yrs from 25/06/2008	2013
NORTH PARK RESIDENCES	920	51	1,844	99 yrs from 19/03/2015	2018
THE WISTERIA	216	27	1,381	99 yrs from 27/04/2015	2018

Source: CBRE Research, realis, data downloaded as of 9 Sep 2025.

99y-leasehold non-landed resale projects in the vicinity include Orchid Park Condominium, The Estuary, and The Wisteria which traded at median prices of $981 psf for the oldest (completed in 1994) to $1,381 psf for The Wisteria (completed in 2018) from 2024 – 2025 YTD. 
 
Located within walking distance to Khatib MRT and sports and recreational facilities nearby such as Yishun Stadium, Yishun Sports Centre, and Lower Seletar Reservoir Park, the joint developers would enjoy a first-mover advantage in the new Chencharu housing estate and could see strong pent-up demand from potential upgraders at the nearby Yishun HDB estates. At a bid price of $980 psf ppr, the future project could be launched at an average price of $2,450-2,550 psf.