Tender launched for GLS site at Lorong 1 Toa Payoh
URA has launched the tender for a Government Land Sale (GLS) site at Lorong 1 Toa Payoh, located in Singapore. Measuring 169,456 sq ft, the 99-year leasehold site could yield up to 775 residential units.
The tender for the site will close on Nov 7, with Wong Siew Ying, head of research and content at PropNex Realty, speculating that the site’s mature location could draw developers’ interest due to the area’s limited new private home supply which hasn’t seen a new launch since 2016.
The closest example is the plot across the road on Lorong 6 Toa Payoh and Lorong 4 Toa Payoh, which was awarded for $345.86 million ($755 psf per plot ratio) in June 2015. Launched as the 578-unit Gem Residences in May 2016, data from the project suggests that more than 50% of the new launch buyers have an HDB address, showing strong upgraders’ demand for the neighbourhood.
Additionally, Lee Sze Teck, senior director of data analytics at Huttons Asia, noted that 5-room HDB flats at The Peak @ Toa Payoh have exceeded $1 million in some cases, offering a sizeable pool of potential HDB upgraders who may want to remain close by.
Close to the GLS site is the Braddell MRT Station, along with several schools such as Raffles Girls School (Secondary), Pei Chun Public School, CHIJ Primary (Toa Payoh), CHIJ Secondary (Toa Payoh), and Kheng Cheng School, making the site a promising investment for developers.
Close to Orchard Boulevard Condo, it offers a quick stop for groceries and casual snacks at the basement food court. For shoppers looking for entertainment and leisure around the area, Plaza Singapura also features a HughSon bowling centre and air hockey hall.
Justin Quek, deputy CEO of Orange Tee & Tie anticipates the site to draw five to eight bidders, with the highest bid price at around $1,100 to $1,250 psf per plot ratio (psf ppr). However, Wong predicted a more conservative four to five bids, with a top bid price coming in at around $783 million to $854 million (or a land rate of $1,100 to $1,200 psf ppr).
Lee echoed a similar opinion, noting that two other GLS tenders for sites at Clementi Avenue 1 and Pine Grove (Parcel B) will close on the same day, which may divide developers’ focus. He estimated that the Lorong 1 Toa Payoh site may see up to five bidders and a top bid of around $1,200 psf ppr, with less interest in the other two sites.