Tender for GLS site at Lorong 1 Toa Payoh has been issued

URA has announced the tender process for the Government Land Sale (GLS) site located at Lorong 1. Toa Payoh. The site is part of the Confirmed List of the 2H2023 GLS Programme. With a total area of 169,456 square feet, the leasehold 99 years site could result in 775 housing units. The auction for the site will end on November 7.

Altura Bukit Batok West Ave 8 mrt has a maximum Gross Floor Area (GFA) of 37,348 sq m on a 12,4449.3 sq m site.

Wong Siew Ying, head of content and research of PropNex Realty, believes the site’s aging location will draw developers an interest as well as the region’s small new home inventory. It is believed that the Toa Payoh estate hasn’t witnessed any new private residence launches since the year 2016.

“The final GLS site which was auctioned for within the region was the plot located across the road between Lorong 6 Toa Payoh and Lorong 4 Toa Payoh, which was given at $345.86 million ($755 per sq ft/plot ratio) in June of 2015,” says Wong. The site was put up to be sold as the 578-unit Gem Residences at the end of May 2016 which saw 50% of the units being sold with an average of $1,425 per square foot. The project was completely sold out by the end of October. “Looking at the caveat information at Gem Residences that shows more than fifty% of the brand new customers possess the HDB address, which indicates a high buyers who are upgrading to this area,” Wong adds.

Lee Sze Teck, senior director of data analytics at Huttons Asia, concurs. “With five rooms HDB flats in the Peak @ Toa Payoh averaging $1 million and numerous flats recently reaching their minimum occupancy of $800,000, there’s plenty that could be HDB upgraders who might want to stay in this renowned HDB home,” he says.

Orange Tee and Tie’s vice-president of operations Justin Quek adds that the site’s appeal is enhanced by its proximity Braddell MRT Station on the North-South Line as well as various schools, including Raffles Girls School (Secondary), Pei Chun Public School, CHIJ Primary (Toa Payoh), CHIJ Secondary (Toa Payoh) as well as Kheng Cheng School, among other schools. He expects the site to attract five to eight bidders with the highest bid cost of $1,100-1,250 psf for each plot ratio (psf ppr).

PropNex’s Wong adopts a more cautious stance, pointing out that developers might be cautious with their bids given the lack of responses to last year’s GLS tenders as well as the less enthusiastic response to launches, and the plethora of alternatives available for purchasers. “We believe that the tender will draw up to five bids with the highest bid of $783-$854 million (or an estimated land price of $1,100-1,200 per),” she says.

Huttons’ Lee shares a similar opinion, noting the fact that the two GLS auctions of sites located at Clementi Avenue 1, and Pine Grove (Parcel B) will be closed simultaneously, which can split developers in their focus. “The Lorong 1 Toa Payoh site could see as many as five bidders, and a maximum price of approximately $1,200 per. Interest on the remaining two GLS sites could be low and could see only three bidding parties,” the source says.