In a notable collaboration, three major property developers, City Developments Ltd (CDL), Frasers Property, and Sekisui House joined forces to secure the highest bid of $968 million (or $1,360 per square foot per plot ratio) for a Government Land Sales (GLS) site situated at Lorong 1 Toa Payoh.
This consortium, comprising prominent entities in the real estate sector, submitted a tender for the 1.57-hectare site, offering a land rate of $1,360 per square foot per plot ratio (psf ppr).
The joint bid reflects a strategic partnership among the three companies involved in the venture.
Despite a perceived lower participation rate compared to previous GLS tenders, developers demonstrated a strong commitment by submitting robust bids to secure prime positions.
The joint bid for Lorong 1 Toa Payoh significantly surpassed the next highest bid, indicating the developers’ determination to acquire this sought-after parcel of land.
The Lorong 1 Toa Payoh GLS site, dormant for eight years in terms of tender activity, is now poised to meet pent-up demand and unlock development potential.
The developers have outlined plans for a residential project comprising nearly 800 units should they successfully secure the bid.
The appeal of this location lies in its mature residential setting, its strategic proximity to transportation hubs, and the absence of recent project launches, making it an attractive prospect for potential homebuyers.
Industry analysts have underscored the pent-up demand within the Toa Payoh estate, emphasising the extended hiatus since its last property launch.
The site’s favourable location, coupled with its proximity to transportation infrastructure and a track record of million-dollar property resales, adds to its overall allure.
While initial expectations hinted at a higher number of bids for the Toa Payoh GLS site, the actual turnout fell below projections.
Analysts suggest that developers exercised caution, possibly due to the substantial size of the land parcel.
Despite the advantageous location, the larger scale of development and higher financial quantum may have deterred some developers from participating actively in the bidding process.
The projected average selling price for the future new launch condo project is estimated to fall within the range of $2,400 to $2,500 per square foot, reflecting the potential premium associated with this well-located and promising development.