Tenders for 3 plots of Government Land Sale (GLS) for Lorong 1 Toa Payoh, Clementi Avenue 1 and Pine Grove (Parcel B) land parcel sites closed today at 12 noon on 7 November 2023 (Tuesday).
"From the bid prices submitted, developers who successfully acquired these land parcels in the OCR regions may likely be launching these upcoming condo developments from $2,4xx psf onwards due to higher construction costs and higher energy prices from turmoil in the Middle East" said real estate professional Kiwi Lim who has been advising clients through his analysis of the market for more than a decade.
The Government Land Sale (GLS) site at Clementi Avenue 1 was launched for sale under the Confirmed List in August this year and can potentially yield about 500 private residential units sitting on 144,734 sq ft (1.34ha) of land space.
The tender for Clementi Ave 1 land parcel attracted 6 bidders as Clementi is a matured estate surrounded by amenities and is home to many good schools, example Nan Hua High School, Clementi Primary School, Pei Tong Primary School, Clementi Town Secondary School, NUS High School of Mathematics and Science, Singapore Polytechnic and National University of Singapore (NUS).
"Clementi Ave 1 land parcel is also near to two recently completed projects — The Clement Canopy and Clavon, both projects by UOL Group." said real estate professional Kiwi Lim "The Clement Canopy site was acquired in December 2015 at a land rate of $615 psf per plot ratio (ppr) and the Clavon site was acquired in July 2019 at $788 psf per plot ratio (ppr). The recent acquisition of the Clementi Avenue 1 site at approximately $1,250 psf per plot ratio (ppr) shows the amount of confidence the developer has for Clementi area.
Kiwi Lim believe that if the new upcoming condo on the plot of land in Clementi Ave 1 is going to be launched from around $2,400 psf next year, then it will make J'den a very attractive option for the lucky buyers who have registered to be invited for the VIP preview of J'den this Saturday on 11 November 2023. Capitaland is expected to be launching the rare fully integrated condo J'den this Saturday to registered buyers from $2,1xx psf. J'den is located at the previous JCube which is connected to almost the whole of Jurong Gateway CBD via a level 2 elevated walkway - J Walk, which allows residents to walk to Westgate, JEM, IMM, Ng Teng Fong Medical Hub, 4 MRT Lines (2 upcoming) and grade A offices.
The Government Land Sale (GLS) site at Lorong 1 Toa Payoh was launched for sale under the Confirmed List in September 2023 and can potentially yield about 775 private residential units. Measuring 169,456 sq ft, the 99-year leasehold site’s mature location will draw developers’ interest, along with the area's limited new private home supply.
Toa Payoh estate has not seen any new private home launches for nearly 8 years, with the last new condo launch being the 578-unit Gem Residences which was acquired by the developer for $755 psf per plot ratio (ppr) in May 2016, with 50% of units taken up at an average price of $1,425 psf on the first weekend of launch.
"The recent successful bid of $1,360 psf per plot ratio (ppr) is possibly due to strong upgraders’ demand for this neighborhood and may see developer launching at an estimated average of $2,5xx psf next year" said Kiwi Lim from the largest private real estate agency in Singapore.
The Government Land Sale (GLS) site at Pine Grove (Parcel B) was launched for sale under the Confirmed List a few months ago and can potentially yield about 565 private residential units. The tenders for Pine Grove (Parcel B) attracted 3 bidders with a land site area of 25,039.2 sq m with a maximum GFA of 52,583 sq m. It is estimated to yield about 565 housing units.
The Pine Grove (Parcel B) land parcel would be the second plot to be launched for tender in the area, and sits next to the just-launched Pinetree Hill project, which was sold to a joint venture between UOL Group and Singapore Land Group in June 2022 for S$671.5 million, giving a land rate of S$1,318 psf ppr.
The developer who successfully bidded for the Government Land Sale (GLS) site at Pine Grove (Parcel B) may likely have been inspired by from the sales of the 520-unit Pinetree Hill which was launched in July this year and has sold 151 units to date at an average price of about $2,369 psf, based on latest available caveats data.