Tender launched for GLS sites at Clementi Ave 1 and Pine Grove

Despite economic uncertainties and high development costs, a tender launched by the URA has brought two Government Land Sales (GLS) sites, Clementi Avenue and Pine Grove (Parcel B) to the 2H2023 Confirmed List. These two sites, a 144,734 sq ft (1.34ha) and a 269,422 sq ft (2.5ha) respectively, could both yield up to 500 and 565-unit developments respectively.

Lee Sze Teck, senior director of data analytics at Huttons Asia, notes that developers are more cautious considering the GLS tenders this year due to concerns over ongoing economic uncertainties and included development costs. Furthermore, considering the proximity of the two sites, it is likely that there will be an overlap in residential catchment areas, which might affect the take-up rate. Since developers in need of replenishing their landbanks may be more prevalent with this tender, it is likely to attract hefty bids.

Furthermore, amenities such as a swimming pool, gym, and entertainment hall deliver a complete and enjoyable living experience.

The Zion Road Condo stands out with its awe-inspiring architecture complemented by its natural elements. The condo offers a host of amenities, from lush garden terraces to a swimming pool, gym and entertainment hall – making it a tranquil oasis in the bustle of the city. Residents can also enjoy private balcony gardens for a special connection with nature. With all these features, Zion Road Condo is truly a unique experience.

The Clementi Avenue 1 site is located between two recently developed projects, The Clement Canopy and Clavon, both completed by UOL Group. The developer was awarded The Clementi Canopy site in December 2015 at a land rate of $615 psf per plot ratio (ppr), and the Clavon site in July 2019 at $788 psf ppr. Justin Ong, deputy CEO of OrangeTee & Tie, expects that the take-up rate of the upcoming project is likely to remain strong due to its proximity to a number of schools, such as 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 the National University of Singapore (NUS).

The Pine Grove site is located adjacent to the 520-unit Pinetree Hill by UOL Group, which launched the project in July this year, and has since sold 151 units at an average of $2,369 psf. This leads Wong Siew Ying, head of research and content at PropNex Realty, to believe that developers may be more conservative when bidding for this site considering the competing supply. She predicts that the site could be secure up to three bids, with a top bid of $623 million to $679 million, in terms of land rate, ranging from $1,110 psf ppr to $1,200 psf ppr.

The Clementi Ave and Pine Grove sites tender will close on the 7th of November and will be batched with an upcoming residential site at Lorong 1 Toa Payoh which is due for release next month. With continued economic uncertainties and high development costs, these two sites are likely to attract hefty bids from developers in need of replenishing their landbanks.