Singapore’s URA Launches Tender for Toa Payoh Site Yielding 775 Homes

Singapore’s Urban Redevelopment Authority on Tuesday launched a residential website for sale within the Toa Payoh neighbourhood of the city-state’s central area, as officers proceed to roll out plots underneath the Government Land Sales Programme.

The tender for the 1.57 hectare (3.88 acre) website at Lorong 1 Toa Payoh, which might yield about 775 houses, will shut on 7 November, together with the tender workouts launched in August for the Clementi Avenue 1 and Pine Grove Parcel B plots, the URA mentioned in a launch. The three plots collectively can yield 1,840 residential models.

The 99-year leasehold website in Toa Payoh lies inside strolling distance of Braddell MRT station on the North-South Line and is at the moment occupied by Singapore’s Police Security Command. Given that Toa Payoh has seen no new personal dwelling launches since 2016, native company PropNex Realty expects “fairly decent” curiosity for the positioning amongst builders.

“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),” mentioned Wong Siew Ying, head of analysis and content material at PropNex, with the estimate implying a price of S$1,100 to S$1,200 per sq. foot of constructed space.

Limited New Supply

The final GLS website to go up for tender within the space, throughout the highway at Lorong 6 Toa Payoh/Lorong 4 Toa Payoh, was awarded for S$345.86 million (S$755 per sq. foot) in June 2015, in accordance with PropNex. The website was developed because the 578-unit Gem Residences, which offered half its models at a median value of $1,425 per sq. foot at launch in May 2016 and was totally offered out by October 2019.

“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 mentioned.

In addition to the restricted new personal dwelling provide within the space, different drawing playing cards for builders embrace Toa Payoh’s enchantment as a mature housing property and its proximity to a number of fashionable colleges, together with 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 mentioned.

Market Moderating

The second quarter noticed the primary dip in Singapore’s housing market in three years, with official figures displaying that common costs for new personal houses fell 0.2 % in contrast with the primary three months of the 12 months, ending a COVID-induced spike as builders launched a wave of latest initiatives.

With shortages brought on by pandemic-related development delays quickly fading, analysts have pointed to a gush of latest provide boosting gross sales quantity and moderating costs after consumers had been compelled to compete for a restricted provide of latest housing in 2022.

The 775 potential houses at Lorong 1 Toa Payoh kind a part of the 5,160 residential models to be made out there by way of the Confirmed List of the GLS programme within the second half of 2023.