URA launches tender for Faber Walk GLS residential site
/ EdgeProp Singapore |
The Faber Walk GLS site (pinned) can yield up to 400 housing units (Photo: URA)
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SINGAPORE (EDGEPROP) - URA launched the tender for the Government Land Sale (GLS) site at Faber Walk in Clementi on September 12. The site is under the 2H2024 GLS Confirmed List programme.
The 99-year leasehold site occupies about 277,660 sq ft and has a gross plot ratio of 1.4. The site is zoned fully for residential (non-landed) use and is expected to yield up to 400 housing units.
This is the last parcel of land for sale in the Faber Walk private residential enclave, says Mark Yip, CEO of Huttons Asia. The previous GLS site sold in the Faber Walk area was in 2013 and launched in May 2014. It has since been developed into the 210-unit Waterfront @ Faber, completed in 2018. “Hence, considerable demand may have built up over the years,” he notes.
Demand could come from the landed homeowners in the neighbouring Faber Hills Estate, says Marcus Chu, CEO of ERA Singapore. ”The older landed homeowners might be looking to right-size their home, or multi-generation family members who want to buy homes within the same project,” he observes.
Though there may be potential pent-up demand for new projects, Chu says developers may be cautious due to the site’s less attractive location compared to other sites on the 2024 Confirmed List, such as Bayshore, Chuan Grove and Chencharu, which are within established housing enclaves.
The Faber Walk GLS site is bounded by the Ayer Rajah Expressway (AYE) to the south, Sungei Ulu Pandan to the north and a landed housing enclave to the west. The site’s location is not within walking distance of many amenities, but it is within driving distance of many locations given its closeness to the AYE, such as the upcoming Jurong Lake District, NUS, and one-north.
“The project could appeal to homebuyers and investors as the site is not far from employment nodes in Jurong Lake District, the International Business Park and industrial spaces in Pandan Loop,” says Wong Siew Ying, head of research and content at PropNex.
GLS sites since June 2024 have seen muted responses at tenders with just two to three bids, Chu observes. He expects the response to be similar for the Faber Walk GLS site. “Developers are subjected to greater risk without the ability to leverage HDB upgraders,” Chu comments. Hence, he expects developers to submit bid prices in the range of $950 psf per plot ratio (ppr) to $1,050 psf ppr.
Meanwhile, Huttons’ Yip expects the site to attract up to three bidders with a top bid price of between $800 and $850 psf ppr.
The tender for the site will close on 19 November at 12pm.
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