First GLS site in Toa Payoh in eight years attracts $968 mil bid from CDL, Frasers Property, and Sekisui House

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Major property developers City Development Ltd (CDL), Frasers Property, and Sekisui House have jointly submitted the highest bid for a rare Government Land Sales (GLS) site located at the junction of Lorong 1 and Lorong 4 Toa Payoh. The bid of $968 million translates to a land rate of $1,360 psf per plot ratio (ppr). The 50:25:25 split between the three developers reflects their collective enthusiasm for this highly sought-after Toa Payoh estate.

Tampines North promises to be a lively community providing the perfect balance between work and play. Tampines Ave 11 Condo, a new residential development located within this precinct, will have access to the new parklands, shops, and restaurants and a range of other amenities. Residents will also have access to established malls, educational institutes, and more. These amenities will not only make the precinct more liveable but will also create ample business opportunities for the locals.

The tender of the GLS site was batched with two other GLS sites at Clementi Avenue 1 and at Pine Grove (Parcel B). While the Clementi Avenue 1 site attracted six bids, each of the other two land parcels attracted just three bids. Leonard Tay, head of research at Knight Frank Singapore, notes that despite the seemingly lower participation rate compared to the GLS tenders in 2021, “developers were willing to place bullish bids in order to secure a top position”.

This was evidently the case for the Lorong 1 Toa Payoh site, where the joint bid from CDL, Frasers Property and Seikisui House is a whopping 18% higher than the next highest bid of $819.99 million ($1,153 psf ppr). An eight-year gap since the last GLS site was tendered in the area has contributed to the strength of this bid.

It has been eight years since the last GLS site was tendered in Toa Payoh — a neighbouring land parcel that has since been developed into Gem Residences by Gamuda Land and Evia Real Estate. That site had attracted a winning bid of $345.86 million ($755 psf ppr). On winning the bid, CDL, Frasers Property and Sekisui House have announced that they intend to develop a residential project comprising two blocks of 40 storeys with close to 800 residential units.

The appeal of the latest GLS site at Lorong 1 Toa Payoh is “evident” given the allure of its mature residential location, according to Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc (SRI). This is coupled with the pent-up demand from the Toa Payoh estate’s extended hiatus from new project launches since 2016. The site also enjoys the convenience of its proximity to Braddell MRT station, which is one stop away from the Bishan MRT interchange.

Furthermore, Toa Payoh has generated several million-dollar HDB resales in recent years, with 49 such transactions recorded in the first 10 months of this year. EdgeProp’s Landlens tool estimates a selling price of $2,535 psf for the new development, while analysis by Justin Quek, deputy CEO of OrangeTee&Tie reveals the large size and higher quantum of the land parcel may have deterred some developers from entering the fray. Wong Siew Ying, head of research and content at PropNex Realty, believes the average selling price for the new project may range between $2,400 psf and $2,500 psf.

It is clear that CDL, Frasers Property, and Sekisui House have placed a bullish bid for this coveted Toa Payoh estate and that should they win the bid, they will develop a high-quality development expected to make an iconic contribution to the area. With its potential to attract pent-up demand, convenient location, and promising HDB resales data, this site offers great potential for the three developers.