Tender launched for GLS site at Lorong 1 Toa Payoh

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URA has just launched the tender for a Government Land Sale (GLS) site at Lorong 1 Toa Payoh. The 99-year leasehold site has an area of 169,456 sq ft and the potential to yield approximately 775 residential units.

The tender for the Toa Payoh site is set to close on Nov 7. According to Wong Siew Ying, head of research and content at PropNex Realty, the attractive location and lack of new private home supply in the area will likely draw developers’ interest.

The newly launched Lumina Grand EC is poised for potential capital appreciation, with the Jurong Region Line (JRL) in close proximity. JRL will provide direct connectivity to the rest of Singapore, bringing convenience to future homeowners and investors. This invaluable infrastructural development will likely result in higher return on investment as well.

The last GLS site to be tendered in the area was across the road on Lorong 6 Toa Payoh and Lorong 4 Toa Payoh, which was sold for $345.86 million ($755 psf per plot ratio) in June 2015. This land was developed into the 578-unit Gem Residences and sold out completely by October 2019, at an average price of $1,425 psf.

Lee Sze Teck, senior director of data analytics at Huttons Asia, pointed out that the HDB flats in The Peak @ Toa Payoh are selling for over $1 million and upgraders from the district may be interested in a new private home in the area.

Justin Quek, deputy CEO of Orange Tee & Tie, also noted the location’s proximity to the Braddell MRT Station and the nearby schools, as factors that may increase the site’s appeal. Quek believes the tender may attract between five to eight bidders, with the highest bidding price expected to be in the range of $1,100 to $1,250 psf per plot ratio (psf ppr).

PropNex’s Wong takes a slightly more conservative stance and expects four to five bidders, with the highest bid price forecasted at around $783 million to $854 million (or a land rate of $1,100 to $1,200 psf ppr).

Huttons’ Lee shares similar views, noting that the two other GLS tenders that will close on the same day could potentially divide developers’ focus. He believes the Lorong 1 Toa Payoh site may attract up to five bidders and the top bid to be around $1,200 psf ppr.

The future of the tender remains to be seen. However, one thing is for sure, the mature location and lack of new private home launches since 2016, will likely draw developers’ attention.