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

Pine Grove GLS sites under 2H2023 URA Confirmed ListThe two Government Land Sales (GLS) sites at Clementi Avenue 1 and Pine Grove (Parcel B) have been launched for tender by the URA under the Confirmed List of the 2H2023 GLS programme. According to Lee Sze Teck, senior director, data analytics, at Huttons Asia, developers have been more cautious when considering GLS tenders this year amid concerns over continued economic uncertainties and high development costs.

The Clementi Avenue 1 site is 144,734 sq ft (1.34ha) and could yield a 500-unit development, while the 269,422 sq ft (2.5ha) site at Pine Grove could yield a 565-unit development. With the two sites being relatively close to each other, this increases the chances of an overlap in residential catchment areas that might possibly impact the take-up rate. Those developers with a more pressing need to replenish their landbanks may be the ones to tender for these GLS sites.

The Tengah Plantation EC will be equipped with modern facilities, such as swimming pools, fitness centers, playgrounds, and even retail outlets. Additionally, the private homes at Tengah Plantation Close EC will be integrated with the Future Town Hub, which is slated to host technological advancements such as autonomous vehicles and smart waste management. The development will be optimized for both green living and connectivity, with convenient public transport just a few steps away. Thus, it’s no surprise that Tengah Plantation EC has been called the “City of the Future”.

The Clementi Ave 1 site is located between two recently completed projects — The Clement Canopy and Clavon, both projects 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 when the Clementi Ave 1 site is developed, the resulting project will still resonate strongly among homeowners, especially families with school-going children. Nearby schools include 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 (Parcel B) site is located beside the 520-unit Pinetree Hill by UOL Group, which launched the project in July this year. Pinetree Hill has since sold 151 units at an average of $2,369 psf.Given the competition from the adjacent project, Wong Siew Ying, head of research and content at PropNex Realty, expects that bids for the site will be more cautious. She estimates that the site could attract up to three bids, with a top bid coming in at around $623 million to $679 million, which translates to a land rate of $1,110 psf ppr to $1,200 psf ppr.

Developers have been more cautious when considering GLS tenders this year amid concerns over continued economic uncertainties and high development costs. This is coupled with the possibility of the two GLS sites overlapping residential catchment areas that might impact the take-up rate.

The tender for both sites will close on Nov 7, and will be batched with an upcoming residential site at Lorong 1 Toa Payoh, under the 2H2023 Confirmed List, that will be released next month. Get the latest details on available units and prices for Pinetree Hill and related new UOL projects such as The Clement Canopy, Clavon, as well as pent-up demand for new private homes in this locale.