News release

Tenders closing for URA sale sites

Sites at Clementi Avenue 1, Pine Grove (Parcel B) and Lorong 1 Toa Payoh

November 07, 2023

Andrew Peck

+65 9823 7917

SINGAPORE, 7 November 2023

Tender closed today for three Government Land Sales (GLS) sites at Clementi Avenue 1, Pine Grove (Parcel B) and Lorong 1 Toa Payoh.

Site for Tender Site Area Maximum Gross Floor Area Estimated number of housing units Top Bid No of bidders
Clementi Avenue 1 13,451.1 sqm 47,079 sqm 500 $633,447,945 ($1,250 psf per plot ratio or ppr) 6
Pine Grove (Parcel B) 25,039.2 sqm 52,583 sqm 565 $692,388,000 ($1,223 psf ppr) 3
Lorong 1 Toa Payoh 15,743.0 sqm 66,121 sqm 775 $968,000,000 ($1,360 psf ppr) 3

Source: URA, JLL Research

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:

Triple tender closings on a single day compelled most developers to prioritise their focus and allocate resources primarily towards sites in Clementi Avenue 1 and Lorong 1 Toa Payoh, which were deemed the most promising.

Clementi Avenue 1

The site at Clementi Avenue 1 garnered a healthy level of interest in a six-way contest and resulted in a top bid of $1,250 psf ppr.

While the level of tender participation was within what the market anticipated, the top bid of $1,250 psf ppr is slightly beyond general expectations. It is also 58.6% above the $788 psf ppr last achieved by the neighbouring Clavon site in July 2019. This demonstrates the strength of the Clementi micro-market and the imperative to restock land reserves.

Situated within a mature estate abundant with facilities and reputable schools such as Nan Hua High School, NUS (High School of Mathematics and Science, Singapore Polytechnic, and the National University of Singapore (NUS), the site at Clementi Ave 1 appeals to upgraders and investors alike. With a potential tenant pool of students and employees from the Singapore Polytechnic, NUS, Singapore Science Park and one-north, the upcoming project on the site is expected to pique investor interest.

Clavon and The Clement Canopy were sold out in a brief period, demonstrating the robust market for private residences in the Clementi estate.

The developer could look to launch the future development around $2,400 psf.

Pine Gove (Parcel B)

Market response to the Pine Grove site was lukewarm, drawing three bids. This is attributable to continued economic and market uncertainties, increased costs as well as the expected competition from the ongoing Pinetree Hill project next to the site. Market expectations that UOL group may bid for the site and aim to defend the pricing of its Pinetree Hill development likely also discouraged other potential bidders from participating.

The 520-unit Pinetree Hill was launched at an average price of $2,460 in July 2023. Caveat records downloaded on 7 November 2023 showed that 152 units or 38% of the 400 units launched for sale had been sold.

Nevertheless, the top bid of $1,223 psf ppr for Pine Grove Parcel B is 23.8% above the next highest bid of $989 psf ppr.

While the highest bid is a tad above market expectations, it is 7.2% lower compared to $1,318 psf ppr achieved by the neighbouring Pine Grove Parcel A (Pinetree Hill) in June 2022. This indicates calculated bidding strategies by the contenders amid heightened market risks.

The selling price for the new project is anticipated to be in the range of $2,300 psf to $2,400 psf.

Lorong 1 Toa Payoh

The site at Lorong 1 Toa Payoh is widely deemed as appealing given that there is pent-up demand for new private homes in the mature estate of Toa Payoh. The last GLS site sold for private homes development in the area was in 2015, and it was subsequently launched as Gem Residences in 2016.

However, the level of tender participation was muted with just three parties, given the larger total gross floor area and higher price quantum for the site. Developers are facing mounting market challenges and have reduced risk appetites, resulting in their cautious approach to the site, which can be developed into a sizeable project with more than 700 home units.

Despite the subdued reception, the opportunity to tap pent-up demand in the area likely encouraged the JV between City Development Limited, Frasers Property and Sekisui House, Ltd. to submit a competitive bid to win the tender. Their bid is 18.0% above the next highest bid and 24.8% higher than the third and last bid.

The JV’s top bid signals its confidence that a new project on the site will be supported by an ample pool of HDB flat upgraders and those seeking a home in the area. The partners also have trust that the appealing locational qualities of the site will entice homebuyers and help enhance the performance of a new project on the site.

The site is near to a host of amenities and conveniences including the Braddell MRT station on the North-South line, numerous markets and hawkers, the polyclinic, sports facilities and a large base of reputable schools – such as the Raffles Girls School (Secondary), Raffles Institution, Pei Chun Public School, CHIJ Primary (Toa Payoh), CHIJ Secondary (Toa Payoh), as well as Guangyang Primary and Secondary Schools.

The selling price for the new project is anticipated to start from around $2,500 psf.

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