Two residential sites have been launched for sale under the 1H2023 Government Land Sales (GLS) Programme on March 14. The sites comprise a private residential site at Jalan Tembusu and an executive condo (EC) site at Tampines Street 62 (Parcel B).

The Jalan Tembusu site spans 20,572.1 sqm (221,436 sq ft) and has a gross plot ratio of 3.5, with a maximum GFA of 72,003 sqm (775,034 sq ft). It can generate about 840 housing units.

The Tampines Street 62 (Parcel B) site measures 28,000.2 sqm (301,392 sq ft), and has a gross plot ratio of 2.5 or a maximum GFA of 70,001 sqm (753,484 sq ft). It can yield 700 units. The tender for the two land parcels will close on July 18.

OrangeTee & Tie CEO Steven Tan says the Jalan Tembusu site is well-located and close to the upcoming Tanjong Katong MRT Station on the Thomson-East Coast Line and other amenities. It is also close to several schools, such as Chung Cheng High School (Main), Tanjong Katong Girls’ School, and Tanjong Katong Primary School.

Developer interest at Jalan Tembusu will be gauged by the launch of Tembusu Grand, City Developments’ (CDL) 638-unit condo that is slated to launch this quarter. CDL was awarded the 99-year leasehold GLS site in January 2022 for $768 million, or $1,302 psf ppr.

Lee Sze Teck, senior director of research at Huttons Asia, notes that there could be potential pent-up demand for larger projects since the Katong area has not seen a project launch with a land size of more than 200,000 sq ft since Haig Court in 2004.

Two other sites nearby are expected to launch this year. Grand Dunman, a 1,008-unit project by SingHaiyi Group along Dunman Road, is expected to launch sometime near the end of 2Q2023 to early 3Q2023. SingHaiyi purchased the 99-year leasehold GLS site for $1.284 billion ($1,350 psf ppr) in June 2022. The Continuum, an 807-unit joint venture project by Hoi Hup Realty and Sunway Development, is anticipated to launch in 1Q2023. The freehold project’s site at Thiam Siew Avenue was purchased in a collective sale in November 2021 for $815 million or $1,440 psf ppr.

Given the size of the Jalan Tembusu site, OrangeTee & Tie’s Tan believes developers will form consortiums to share bidding costs. He projects the site will receive around two to five bids, with the top bid coming in between $1,300 to $1,380 psf ppr.

The Tampines Street 62 (Parcel B) site is located next to Tenet, the 618-unit EC by developers Qingjian Realty, Santarli Realty and Heeton Holdings. The project launched in December 2022 and currently has only 10 units left for sale, according to Lee. It is also near a mixed-use GLS plot at Tampines Avenue 11 that’s currently up for tender.

Given the successful EC project launches in the past year and the lack of available new EC supply, OrangeTee & Tie’s Tan expects “healthy interest” from developers for the Tampines Street 62 (Parcel B) site. He anticipates around four to seven bidders with a final bid price of $630 to $680 psf ppr. “The future selling price of the EC here could range from $1,380 to $1,450 psf.”

Two residential sites have been launched under the 1H2023 Government Land Sales (GLS) Programme on March 14. These sites comprise a private residential site at Jalan Tembusu and an executive condo (EC) site at Tampines Street 62 (Parcel B). Together, the two 99-year leasehold sites can yield about 1,540 homes.

The Jalan Tembusu site is located opposite the upcoming Tembusu Grand, City Developments’ (CDL) 638-unit condo that is slated to launch this quarter. OrangeTee & Tie CEO Steven Tan noted that the area has not seen a project launch with a land size of more than 200,000 sq ft since Haig Court in 2004, possibly indicating pent-up demand for larger projects.

The Tampines JCube Residence Street 62 (Parcel B) site is located next to Tenet, the 618-unit EC by developers Qingjian Realty, Santarli Realty and Heeton Holdings. Lee Sze Teck, senior director of research at Huttons Asia, noted that only 10 units of the project remain unsold, signifying strong demand for ECs in the area. Tan believes there will be strong interest in this site given the lack of new EC supply.

The tender for the two land parcels will close on July 18. Developers will likely form consortiums to share bidding costs at Jalan Tembusu and Tan expects the site will receive around two to five bids, with the top bid coming in between $1,300 to $1,380 psf ppr. For the Tampines Street 62 (Parcel B) site, Tan anticipates around four to seven bidders with a final bid price of $630 to $680 psf ppr.