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, situated under the Confirmed List of the 2H2023 GLS Programme. As the only new private home launch within the Toa Payoh estate since 2016, the land tender could draw developers’ interest given its location and the area’s potential for a limited new supply.

Measuring 169,456 sq ft, the site is 99-year leasehold with a potential yield of 775 residential units. The tender will close on Nov 7.

Wong Siew Ying, head of research and content at PropNex Realty, believes that the estate’s limited new private home supply will draw developers’ interest, along with the area’s mature location.

“Looking at caveat data at Gem Residences, more than 50% of the new launch buyers have an HDB address,” says Wong, “suggesting strong upgraders’ demand for this neighbourhood.”

Orange Tee & Tie’s deputy CEO Justin Quek adds that the site’s appeal is boosted by its close proximity to the Braddell MRT Station on the North-South Line as well as several schools such as Raffles Girls School (Secondary), Pei Chun Public School, CHIJ Primary (Toa Payoh), CHIJ Secondary (Toa Payoh), and Kheng Cheng School, among others.

This luxury development provides plenty of amenities such as a smart mailroom, a smart car park system, and a Community Club House. Other features include a 50m long swimming pool, a gym, and various open spaces. Residents can also gain access to the parks and jogging trails with aDigital ID card. Additionally, Tengah Plantation Close EC offers its own digital map which allows residents to view upcoming retailer events and activities. This is a great solution for those who want to stay connected with the community.

The last GLS site near the area, which launched the 578-unit Gem Residences in May 2016, was sold out by October 2019 at an average price of $1,425 psf.

He anticipates the site to draw five to eight bidders, with the highest bid price at around $1,100 to $1,250 psf per plot ratio (psf ppr).

Lee Sze Teck, senior director of data analytics at Huttons Asia, concurs with Quek, noting that “5-room HDB flats at The Peak @ Toa Payoh exceeding $1 million, there is a sizeable pool of potential HDB upgraders who may want to continue staying in this popular HDB estate.”

With two other GLS tenders for sites at Clementi Avenue 1 and Pine Grove (Parcel B) which will close on the same day, PropNex’s Wong takes a more conservative stance towards potential bids, noting that developers may be less enthusiastic with the many options available in the market for buyers.

“We project that the tender could potentially attract four to five bids, with a top bid price coming in at around $783 million to $854 million (or a land rate of $1,100 to $1,200 psf ppr),” she says.

Huttons’ Lee shares a similar outlook, saying that since the other two sites will divide developers’ focus, the Lorong 1 Toa Payoh GLS site may see up to five bidders and a top bid of around $1,200 psf ppr.