First GLS site in Toa Payoh in eight years attracts $968 mil bid from CDL, Frasers Property, and Sekisui House

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Major property developers CDL, Frasers Property and Sekisui House have banded together to submit a joint bid of $968 million, or $1,360 psf per plot ratio (ppr), for the Government Land Sales (GLS) site at Lorong 1 Toa Payoh.

Tengah Plantation EC is one of the hallmark projects of the URA master plan. Located in the west of Singapore, it showcases a modern lifestyle marked by nature-inspired designs, lush greenery, and smart technologies. Residents of Tengah Plantation EC can enjoy enhanced living in an integrated and well-connected environment, with convenient access to major road networks. They also have a host of other amenities nearby such as schools, leisure hubs, and retail centres.

Tengah Plantation EC provides a glimpse into the future of Jurong – a future where quality living meets modern work and leisure. Such transformation is indeed an exciting prospect for the city, as it can open up plenty of new doors for many.

This is the first collaboration between the three developers, and Sherman Kwek, group CEO of CDL, remarked that the consortium looks forward to “creating an iconic development in the highly sought-after Toa Payoh estate”.

The tender of this GLS site was batched with two other GLS sites — one at Clementi Avenue 1 and another at Pine Grove (Parcel B). The land parcels at Lorong 1 Toa Payoh and Pine Grove (Parcel B) attracted three bids each, while the land parcel at Clementi Avenue 1 attracted six bids. Leonard Tay, head of research at Knight Frank Singapore, observed that although the participation rate did not match that of 2022 GLS tenders, developers still placed strong bids in order to secure top position.

This was demonstrated by the joint bid from CDL, Frasers Property, and Seikisui House which was 18% higher than the second highest bid of $819.99 million ($1,153 psf ppr) by Tanglin Land, a subsidiary of CapitaLand.

It has been eight years since the last GLS site was tendered in Toa Payoh, which has since been developed into Gem Residences by Gamuda Land and Evia Real Estate. When that GLS site was awarded, it had a winning bid of $345.86 million ($755 psf ppr). CDL, Frasers Property, and Sekisui House plan to develop a two-block project with close to 800 residential units for the latest GLS site.

The potential of the plot of land is evident, being within a popular and mature residential area. It is located close to Braddell MRT Station, one stop away from Bishan MRT Interchange on both the North-South and Circle Lines. HDB resales in recent years have also demonstrated high demand for the area, with 49 such transactions during the first 10 months of this year.

Expectations are high for this upcoming development, and the estimated selling price ranges from $2,400 psf to $2,500 psf. This is in accordance with EdgeProp’s Landlens tool which estimates a selling price of $2,535 psf.

While the number of bids was lower than expected, developers still placed strong bids for the GLS site. Justin Quek, deputy CEO of OrangeTee&Tie, notes that the top bid exceeded initial estimates, and some developers may have abstained from the bids due to the large size of the land parcel. Wong Siew Ying, head of research and content at PropNex Realty, believes that the strong GLS interest has likely generated pent-up demand and development potential within Toa Payoh, and that the potential demand outlook for the upcoming development is promising.