The Urban Redevelopment Authority has closed the tender for a residential site at Faber Walk today. The site was launched on 12 September 2024, and can yield around 400 residential units.
There were three bids received for this plot, which was within our expectations. The highest bid was from GuocoLand (Singapore) Pte. Ltd., TID Residential Pte. Ltd. and Intrepid Investments Pte. Ltd. at a bid price of S$349,857,988 or S$900 psf ppr. This was 8.9 per cent higher than the next highest bid from Oasis (2024) Pte Ltd, which was S$321,308,000 or around S$827 psf ppr. The highest bid price exceeded our initial expectations, which may indicate some confidence in the potential of this site.
The long gap between private residential projects launched here may result in considerable demand for new homes in this area, as the most recent project that was launched nearby from a GLS site was Whistler Grand in 2018. The current site is within one km of Nan Hua Primary School, making it an ideal location for homebuyers who plan to have children. While the land parcel is not within walking distance of many amenities, the location is within driving distance of many locations given its closeness to the AYE, such as the upcoming Jurong Lake District, NUS, and one-north, which may make it quite attractive to homebuyers.
Moreover, as interest rates start to dip, there may be more confidence in the market moving forward, especially given the extremely strong sales figures in the recent few project launches at the start of November. Some of the projects that were just launched managed to achieve stellar sales during the launch weekend, such as Emerald of Katong and Chuan Park managing to sell out 99 per cent and 76 per cent respectively of their total units. Other projects such as Nava Grove and Union Square Residences also saw very healthy sales during their launch. This may hint at keen demand for private housing in Singapore, and the momentum may continue on in the future with more projects set to launch next year which may give developers more confidence.
However, the location of this plot may have moderated interest for this site. Moreover, the site’s limit on the number of residential units alongside the low-rise conditions and lower density may have also been factored in, resulting in just three bids for this site. We may see even greater interest in other upcoming land sales sites, like the plots at Bayshore Road, Chuan Grove, and Holland Link. Some developers may also be waiting for the release of the 1H 2025 GLS programme instead.
Thank you.