Press Release

The Urban Redevelopment Authority has closed the tender for three sites at Pine Grove (Parcel B), Clementi Avenue 1, and Lorong 1 Toa Payoh. All three sites were launched under the Government Land Sales programme for the second half of 2023. Two sites at Clementi Avenue 1 (estimated 500 units) and Pine Grove (Parcel B) (estimated 565 units) launched for sale in August, while the site at Toa Payoh (estimated 775 units) launched for sale in September. The Clementi Avenue 1 parcel was the most popular land parcel, receiving six bids. Demand for the three plots was likely split as they had the same tender closing date.

Clementi Avenue 1

     Six bids were submitted, with the highest bid from CSC Land Group (Singapore) Pte. Ltd. and Caspian Residential 3 Pte. Ltd., at S$633,447,945 or S$1,250 psf ppr. The number of bids were within our expectations, while the highest bid price was above what we expected. Out of the six bids, three were below S$1,000 psf ppr. The site is situated between two other GLS sites, The Clement Canopy which was awarded in December 2015 to Singland Homes Pte. Ltd. and UOL Venture Investments Pte. Ltd., and Clavon, which was awarded in July 2019 to UOL Venture Investments Pte. Ltd. and UIC Homes Pte. Ltd..  

     There was healthy demand from developers for this site as there have been limited project launches in Clementi, with Clavon fully sold, and Ki Residences at Brookvale with a few unsold units. Developers may have been keen to tap on the steady demand for private homes in this area. The site is also conveniently located close to various amenities and schools, which may be attractive to families when the project here launches for sale.

Pine Grove (Parcel B)

    The three bids for this site were within our expectations, and the highest bid was from Golden Ray Edge 3 Pte. Ltd., at S$692,388,000 or S$1,223 psf ppr. The bid psf ppr was 23.8% higher than the next highest bid at around S$988 psf ppr, and but 7.2% lower than the winning bid of the neighbouring Parcel A plot which was earlier sold around S$1,318 psf ppr to United Venture Development (No. 5) Pte. Ltd.. The earlier plot was awarded in June 2022, and is now the project Pinetree Hill. The highest bid psf ppr for this site was the lowest out of the three sites that closed today.

    Nonetheless, there may be sufficient time gap between the launch of Pinetree Hill and the future project at Parcel B to ensure that there is enough demand to absorb the additional supply of new homes in the area. Despite this area having some potential enbloc sites in the vicinity, developers may still have preference for GLS sites, as seen from the multiple bids received for this site.

Lorong 1 Toa Payoh

There were three bids submitted, with the highest bid from CDL Constellation Pte. Ltd., Frasers Property Phoenix Pte. Ltd. and Sekisui House, Ltd., at S$968 million or S$1,360 psf ppr. The bid psf ppr was around 18% higher than the next highest bid, which was around S$1,152 psf ppr. While the number of bidders were below our expectations, the highest bid exceeded our estimations. Some developers could have been cautious of the large size of this land parcel, and may prefer to consider smaller plots of land in future land sales exercises. This is possibly the most attractive land parcel out of the three, as it is within walking distance to the MRT and has ample amenities serving the development here. Moreover, this parcel is one of the few plots of land released for sale in central Toa Payoh, as the most recent GLS site, Gem Residences across the road, was awarded quite some time ago in June 2015 to Evia Real Estate (7) Pte Ltd, Maxdin Pte Ltd and Gamuda Berhad.

    There is also likely to be pent-up demand for private homes, as there are limited private developments in central Toa Payoh. Moreover, median prices of 4-room and 5-room flats in Toa Payoh as of Q3 2023 have reached S$780,000 and S$900,000 respectively, based on HDB data. The strong resale prices may support the upgrading aspirations of HDB homeowners who are aiming to upgrade within the same neighbourhood.