Opportunities for development at Jalan Tembusu and Tampines Street 62 (Parcel B) (EC)
URA and HDB release two residential sites for sale in 1H2023 GLS Programme
SINGAPORE, 14 March, 2023 – The Urban Redevelopment Authority (URA) and Housing & Development Board (HDB) released two residential sites at Jalan Tembusu and Tampines Street 62 (Parcel B) (EC) for sale today under the first half 2023 (1H2023) Government Land Sales (GLS) Programme.
Ms. Chia Siew Chuin, Head of Residential Research, Research & Consultancy at JLL
谢岫君, 私宅市场研究部主管 (新加坡) commented:
The private non-landed residential site along Jalan Tembusu spans 20,572.1 sqm and has a maximum gross floor area (GFA) of 72,003 sqm, while the executive condominium (EC) site known as Tampines Street 62 (Parcel B) has a site area of 28,000.2 sqm and a maximum GFA of 70,001 sqm. Cumulatively, both sites can potentially yield a total of 1,540 residential units, with Jalan Tembusu yielding 840 units and Tampines Street 62 (Parcel B) (EC) yielding the remaining 700 units.
The Jalan Tembusu site is an attractive plot as it is near the Tanjong Katong MRT station slated for completion in 2024. The site is also close to i12 Katong, Parkway Parade and various schools like Tanjong Katong Girls’ School and the Canadian International School (Tanjong Katong campus). Developers looking to replenish their land banks are likely to monitor the sales performance of the upcoming launch of the Tembusu Grand project that sits on the GLS residential site sold to City Developments Limited at a top bid of SGD 768 million (SGD 1,302 psf/pr) in January 2022. The new project to be developed on the GLS plot sold to SingHaiyi at SGD 1.284 billion (SGD 1,350 psf/pr) in June 2022 will also be closely watched.
The subject site would likely be sold above SGD 1 billion, which would limit the number of contenders given the size of the plot. It could draw less than five bids, as developers are expected to remain cautious due to increased risks from high acquisition and construction costs amid soaring interest rates. Top bids could range from SGD 1,300 psf/pr to SGD 1,350 psf/pr (SGD 1.007 billion to SGD 1.046 million).
Tampines Street 62 (Parcel B)
The EC plot at Tampines Street 62 (Parcel B) is an attractive site located in the up-and-coming Tampines North planning subzone, which is well connected with bus stops. The site is also close to the Tampines Eco Green Park as well as schools like Meridian Secondary School and Angsana Primary School. The site is likely to be well-received, boosted by healthy sales performance at the adjacent EC Tenet.
ECs are expected to remain attractive to eligible homebuyers as housing affordability concerns loom amid high interest rates and increased acquisition costs. The tight supply of ECs with around 1,303 units left unsold (excluding unsold sites) is also expected to continue to underpin EC site acquisition demand from developers. Nonetheless, faced with higher costs, developers are expected to remain prudent in their land bids. The site could find three to six bidders vying for it and the top bid may come in between SGD 600 psf/pr and SGD 650 psf/pr. (SGD 452 million to SGD 490 million).
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