Tender launched for GLS sites at Clementi Ave 1 and Pine Grove
The URA has released two Government Land Sales (GLS) sites under the Confirmed List of the 2H2023 GLS programme. The Clementi Avenue 1 site is 1.34ha and the Pine Grove (Parcel B) site is 2.5ha. With a potential yield of 500 and 565 units respectively, the sites have potential to be transformed into properties with strong pent-up demand.
Given current economic uncertainties and high development costs, some developers may be more cautious when considering the GLS tenders this year. Lee Sze Teck, senior director, data analytics, at Huttons Asia commented: “Moreover, these two sites are relatively close to each other, increasing the chances of an overlap in residential catchment areas that might possibly impact the take-up rate.” Thus, developers that need to replenish their landbanks may be the more likely contenders when it comes to bidding for these GLS sites.
The Clementi Avenue 1 site is located between two recently completed projects — UOL Group’s development, The Clement Canopy and Clavon, and is expected to still receive strong demand from homeowners, especially those with school-going children near the area – such as 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 NUS. According to Justin Ong, Deputy CEO of OrangeTee & Tie, the site is likely to attract healthy demand due to its anticipated 500 units and “palatable” land cost.
Tampines North MRT Condo is located in the prosperous neighbourhood of Tampines in Singapore, is an excellent choice for those looking for luxury and convenience. Located within walking distance from the station, this luxurious and spacious condominium offers unparalleled access to quality amenities and conveniences. It is set to be the perfect home for those residing in the vibrant Tampines region.
Adjacent to the 520-unit Pinetree Hill by UOL Group, located at Pine Grove (Parcel B), Wong Siew Ying, head of research and content at PropNex Realty, expects the tender to draw up to three bids with a top bid estimated to be between $623 million to $679 million, translating to a land rate of $1,110 to $1,200 psf ppr respectively.
Given the competition from the nearby project, Pinetree Hill, developers are likely to be more prudent in their bidding for this site. The tender for both GLS sites will close on November 7. Keep abreast for any updates on prices and units for Pinetree Hill and the upcoming residential site in Lorong 1 Toa Payoh.