Canberra Drive EC Site Launches for Tender Under Tighter Rules

The Canberra Drive site, spanning 11,535 sq m with a gross floor area of 18,457 sq m, was launched for tender by HDB on 26 May. The tender will close on 1 October 2026. Property analysts said the site will serve as an early test of how developers respond to the tighter EC rules announced on 8 May by Minister for National Development Chee Hong Tat.

Huttons Asia chief executive officer Mark Yip called the Canberra Drive site “the litmus test on developers’ confidence after the policy change.” ERA Singapore key executive officer Eugene Lim added that 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 GLS programme.”

The last EC site sold nearby was the 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 psf ppr, in September 2025. Analysts now expect the Canberra Drive tender to attract up to five bidders, with the top offer in the range of S$600 to S$700 psf ppr.

The new EC measures, announced on 8 May, introduced several significant changes. The minimum occupation period has been extended from five years to 10 years before an owner can sell their unit. The deferred payment scheme, which allowed buyers to pay 20 per cent upfront and defer the remaining 80 per cent until the project obtains its temporary occupation permit, has been scrapped. Buyers must now follow the normal progressive payment scheme tied to construction milestones.

The required quota of new units reserved for first-time buyers has been raised from 70 per cent to 90 per cent, with the priority period extended significantly from one month to two years. ERA’s Lim noted that without the DPS and with first-timers making up a larger share of buyers, “future ECs may attract a more price-sensitive crowd.” He added: “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.”

PropNex head of research and content Wong Siew Ying said the allocation of 90 per cent of EC units to first-timers for a priority period of two years “may slow the initial take-up rate at the project, given that second-timers used to account for up to 30 per cent of sales within the first month of project launch.” She added that with the longer MOP, developers may assume that EC demand could possibly soften slightly, and buyers may become more selective in choosing locations and unit types.

Despite the tighter policy backdrop, analysts noted the Canberra Drive site is well-located with strong neighbourhood amenities. The plot sits opposite existing EC developments The Visionaire and The Brownstone, and is within a 10-minute walk to Canberra MRT station. It is also near Canberra Plaza, the Bukit Canberra integrated development, and Sembawang Shopping Centre.

The site is within a 1 km radius of Sembawang Primary School and Wellington Primary School, factors that may appeal to young families or buyers seeking convenience. Future residents could also benefit from long-term plans to redevelop Sembawang Shipyard after operations wind down in 2028, with the area expected to be transformed into a live-work-play district bringing new recreational options and employment opportunities to the north.

Ms Wong anticipates the Canberra Drive EC plot “could potentially still draw fair interest, as EC demand in general remains sound owing to their relative affordability compared with other new private condos.” New EC sales 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. EC land bids have also climbed, reaching S$794 psf ppr in January 2026.

Analysts cautioned that demand for future EC projects in the north could become increasingly fragmented due to a growing supply pipeline. According to ERA estimates, about 5,361 HDB flats in Sembawang, Yishun and Woodlands are expected to complete their MOP between 2025 and 2027, potentially providing a sizeable pool of upgrader demand for ECs.

However, ERA’s Lim said that in Q4 2026, two EC projects could make their debut in the region at Woodlands Drive 17 and Sembawang Road, adding an estimated 685 EC units in the north. He noted 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, parcels at Woodlands Drive, 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. He added: “In a more competitive buyer environment, developers may also prioritise bidding on sites with clearer demand or stronger locational attributes.”

ERA’s Lim also noted that a wider bidding gap could emerge as developers gauge the market before new EC pricing benchmarks take shape. The Canberra Drive EC site is among the nine confirmed list sites under the government land sales programme for the first half of 2026.

The Straits Times, 27 May 2026: “Canberra Drive EC site up for tender under tighter rules” by Joyce Lim | The Business Times, 27 May 2026: “Canberra Drive executive condo site is first to test market after EC rules tightened” by Chong Xin Wei