The Toa Payoh development site is occupied by Singapore’s Police Security Command (Image: Google)
Singapore’s Urban Redevelopment Authority on Tuesday released a residential site for sale in the Toa Payoh neighbourhood of the city-state’s central region, as officials continue to roll out plots under the Government Land Sales Programme.
The tender for the 1.57 hectare (3.88 acre) site at Lorong 1 Toa Payoh, which can yield about 775 homes, will close on 7 November, along with the tender exercises launched in August for the Clementi Avenue 1 and Pine Grove Parcel B plots, the URA said in a release. The three plots collectively can yield 1,840 residential units.
The 99-year leasehold site in Toa Payoh lies within walking distance of Braddell MRT station on the North-South Line and is currently occupied by Singapore’s Police Security Command. Given that Toa Payoh has seen no new private home launches since 2016, local agency PropNex Realty expects “fairly decent” interest for the site among developers.
“We project that the tender could potentially attract four to five bids, with a top bid price coming in at around S$783 million to S$854 million ($575.4 million to $627.5 million),” said Wong Siew Ying, head of research and content at PropNex, with the estimate implying a cost of S$1,100 to S$1,200 per square foot of built area.
Limited New Supply
The last GLS site to go up for tender in the area, across the road at Lorong 6 Toa Payoh/Lorong 4 Toa Payoh, was awarded for S$345.86 million (S$755 per square foot) in June 2015, according to PropNex. The site was developed as the 578-unit Gem Residences, which sold half its units at an average price of $1,425 per square foot at launch in May 2016 and was fully sold out by October 2019.
URA chief executive Lim Eng Hwee keeps supplying more sites
“Looking at caveat data at Gem Residences, more than 50 percent of the new launch buyers have an HDB address — suggesting strong upgraders’ demand for this neighbourhood,” Wong said.
In addition to the limited new private home supply in the area, other drawing cards for developers include Toa Payoh’s appeal as a mature housing estate and its proximity to several popular schools, including CHIJ Primary Toa Payoh, First Toa Payoh Primary, Kheng Cheng School, Marymount Convent School and Pei Chun Public School.
“In light of the lukewarm response to recent GLS tender closings, less robust take-up at launches, and plentiful options in the market for buyers, we expect developers to be cautious and show similar restraint with their bidding, notwithstanding the attractiveness of this site,” Wong said.
Market Moderating
The second quarter saw the first dip in Singapore’s housing market in three years, with official figures showing that average prices for new private homes fell 0.2 percent compared with the first three months of the year, ending a COVID-induced spike as developers launched a wave of new projects.
With shortages caused by pandemic-related construction delays rapidly fading, analysts have pointed to a gush of new supply boosting sales volume and moderating prices after buyers had been forced to compete for a limited supply of new housing in 2022.
The 775 potential homes at Lorong 1 Toa Payoh form part of the 5,160 residential units to be made available via the Confirmed List of the GLS programme in the second half of 2023.
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