The URA has begun the bidding process for two land parcels under the 2H2023 Government Land Sales (GLS) programme.
These sites are located at Clementi Avenue 1 and Pine Grove (Parcel B) respectively; both of which are on the Confirmed List.
The Clementi Avenue 1 parcel is 144,734 square feet (equivalent to 1.34 hectares) in size and has the potential for a 500-unit residential development.
The Pine Grove site, on the other hand, is 269,422 square feet (approximately 2.5 hectares) in size and could accommodate a condominium housing approximately 565 units.
Lee Sze Teck, who serves as the Senior Director of Data Analytics at Huttons Asia, has noted that property developers have approached GLS tenders with greater caution this year due to concerns about ongoing economic uncertainties and the high costs associated with construction.
He has also added that those developers with a greater need to replenish their land inventory may likely be the ones who will tender for these GLS sites.
The Clementi Ave 1 land parcel is nestled between The Clement Canopy and Clavon, two recently completed condominium projects.
The UOL Group developed both condominiums.
The Clementi Canopy plot was acquired by the developer back in December 2015 for $615 per square foot per plot ratio (psf ppr), followed by the other plot in July 2019 for $788 psf ppr.
One analyst said that the upcoming new launch at Clementi Avenue 1 will appeal to homeowners, particularly families with school-aged children.
This is aided by the proximity of prestigious educational institutions such as Nan Hua High School, Clementi Primary School, Singapore Polytechnic, and the National University of Singapore (NUS), among others.
Analysts anticipate strong interest from developers given the site’s potential for approximately 500 private homes and the reasonably manageable land cost.
Furthermore, there could possibly be a pent-up demand for new private residential homes, as recent projects in the area have either sold out completely or have only a few units left unsold.
The Pine Grove (Parcel B) plot is expected to draw more cautious bidding because it is adjacent to the 520-unit Pinetree Hill development by UOL Group, which was launched in July of this year and has successfully sold 151 units at a median price of $2,369 per square foot (psf).
Market watchers attributed the caution to the presence of the nearby PineTree Hill project.
They foresee that the Pine Grove site could receive up to three bids, with the highest bid likely falling between $623 million and $679 million.
This equates to a land rate of $1,110 psf per plot ratio (ppr) to $1,200 psf ppr.
Just for the record, the PineTree Hill condo site was acquired by UOL and SingLand for $671.5 million (or $1,318 psf ppr).
Tenders for both sites must be submitted by 7 November 2023.
This tender will be combined with an upcoming residential GLS site at Lorong 1 Toa Payoh, which is listed in the 2H2023 Confirmed List.