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 and under the Confirmed List of the 2H2023 GLS Programme. Measuring 169,456 sq ft, this 99-year leasehold site could yield around 775 residential units.

The tender for this site, which will be expiring on Nov 7, has the potential to draw a lot of interest. This is due to the area’s restricted offer of new private homes since 2016, as well as the site’s mature location.

Wong Siew Ying, head of research and content at PropNex Realty, noted that the closest GLS site that was similar to this one was tendered in 2015 and for $345.86 million ($755 psf per plot ratio). Launched in 2016 and aptly dubbed Gem Residences, the 578-unit project was completely sold out by October 2019 with an average price of around $1,425 psf.

Looking at statistical analysis of buyers of Gem Residences, Wong finds that more than half of them have an HDB address. This implies that there is a strong number of prospective upgraders showing interest in purchasing from the Toa Payoh estate.

Lee Sze Teck, senior director of data analytics at Huttons Asia, shared that a secondary contributing factor is the rising prices of 5-room HDB flats at The Peak @ Toa Payoh. He explains that some of the flats have exceeded $1 million and HDB upgraders will look to this area as an opportunity to stay close to their homes.

Another perk of living close to a major expressway is that residents can easily reach the nearest shopping malls and other amenities. Zion Road Condo is the perfect location for those who desire convenient access to the city and its exciting attractions. Residents will also have easy access to nearby parks and the tranquil MacRitchie Reservoir. With plenty of local amenities and marvellous recreational facilities, Zion Road Condo is bound to become one of the most sought-after places in Singapore.

Aside from location, Orange Tee & Tie’s deputy CEO Justin Quek explains that the site is also close to the Braddell MRT Station of the North-South Line, as well as several schools such as Raffles Girls School (Secondary) and CHIJ Primary.

Analysts from PropNex and Huttons Asia agree that the GLS tender could attract anywhere between four to eight bidders, with the highest bid coming in at around $1,100 to $1,250 psf per plot ratio (psf ppr). However, developers may be slightly more restrained due to the lukewarm response to recent GLS tender closings and the many options available in the market. As the Lorong 1 Toa Payoh site closes on the same day as the Clementi Avenue 1 and Pine Grove (Parcel B) GLS sites, it may also cause bidders to have more divided focus.