The Housing and Development Board (HDB) had changed the rules for ECs in hopes that it would drive down developers’ bids.

ECs were introduced in 1995 to provide an option for higher-income Singaporeans who aspire to own private housing.

They are developed and sold by private developers, with design features and facilities similar to private condominiums.

The new rules, announced in May, are part of efforts to help first-time home buyers secure a unit. National Development Minister Chee Hong Tat said during the announcement that he had hoped the new measures would “result in developers reducing their bids and the prices for their ECs”.

The median prices of new EC units have soared in recent years, with recent launches going at record prices.

PropNex’s head of research and content Wong Siew Ying said it appeared that the new EC measures did not deter developers.

“The number of bids and top bid price for the Canberra Drive EC plot have far exceeded our expectations,” she added.

“We think it is possible that the tender drew livelier participation because the new EC measures were expected to make bidding more cautious, giving developers reason to take part on the chance that a more moderate bid might succeed.”

If the site is awarded to the top bidders, Ms Wong said it is projecting that the average selling price of this EC project may be around S$1,900 psf.

The top few bids were clustered tightly. The second highest bid was S$803 psf ppr from Intrepid Investments and TID Residential, and the third was S$798 psf ppr from an Apex Asia-led consortium.

When the tender was launched, PropNex had expected a top bid of around S$620 psf ppr to S$660 psf ppr.

ERA Singapore’s key executive officer Eugene Lim said the broad field of 13 bidders showed that developers’ enthusiasm for EC land “remains unabated”, as they navigate through “unchartered territory” with the new EC rules and greater first-timer eligibility.

“Despite the strong turnout, the sizeable spread of 128.5 per cent between the highest and lowest bids is revealing of vastly differing outlooks for future EC reception,” he added.

“While optimistic bidders likely saw upside in an expanded pool of eligible first-timers, more conservative players could have factored in greater price sensitivity from this buyer group, especially without the cushion of the Deferred Payment Scheme.”