Map showing location of the Lor 1 Toa Payoh site (Picture: URA)
SINGAPORE (EDGEPROP) - URA has launched the tender for a Government Land Sale (GLS) site at Lorong 1 Toa Payoh. The site is under the Confirmed List of the 2H2023 GLS Programme. Measuring 169,456 sq ft, the 99-year leasehold site could yield about 775 residential units. The tender for the site will close on Nov 7.
Wong Siew Ying, head of research and content at PropNex Realty, believes the site’s mature location will draw developers’ interest, along with the area's limited new private home supply. The Toa Payoh estate has not seen any new private home launches since 2016.
“The last GLS site to be tendered for in the area was the plot across the road on Lorong 6 Toa Payoh and Lorong 4 Toa Payoh, which was awarded for $345.86 million ($755 psf per plot ratio) in June 2015,” says Wong. The site was launched for sale as the 578-unit Gem Residences in May 2016, with 50% of units taken up at an average price of $1,425 psf. The project was fully sold out by October 2019. “Looking at caveat data at Gem Residences, more than 50% of the new launch buyers have an HDB address, suggesting strong upgraders’ demand for this neighbourhood,” Wong adds.
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That most recent private housing launches within a 500m radius of the Lorong 1 Toa Payoh GLS site include Gem Residences and Trevista which launched in 2016 and 2009 respectively (Source: EdgeProp LandLens)
Lee Sze Teck, senior director of data analytics at Huttons Asia, concurs. “With 5-room HDB flats at The Peak @ Toa Payoh exceeding $1 million and several flats that recently hit their minimum occupation period exceeding $800,000, there is a sizeable pool of potential HDB upgraders who may want to continue staying in this popular HDB estate,” he says.
Orange Tee & Tie’s deputy CEO Justin Quek adds that the site’s appeal is boosted by its 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. 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).
PropNex’s Wong takes a slightly more conservative stance, noting that developers may be restrained with their bidding given the lukewarm response to recent GLS tender closings, less robust take-up at launches, and 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 view, noting that two other GLS tenders for sites at Clementi Avenue 1 and Pine Grove (Parcel B) will close on the same day, which may divide developers’ focus. “The Lorong 1 Toa Payoh site may see up to five bidders and a top bid of around $1,200 psf ppr. Interest in the other two GLS sites may be lukewarm and see not more than three bidders,” he adds.