Two residential sites in the 1H2023 Government Land Sales Programme have been launched for sale, with a tender closing date of July 18. 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 gross floor area (GFA) of 72,003 sqm (775,034 sq ft). It can generate about 840 housing units.
The other site, located at Tampines Street 62 (Parcel B), measures 28,000.2 sqm (301,392 sq ft) and has a gross plot ratio of 2.5 with a maximum GFA of 70,001 sqm (753,484 sq ft). It can offer up to 700 units.
OrangeTee & Tie CEO Steven Tan believes the Jalan Tembusu site is well-located and close to the upcoming Tanjong Katong MRT Station on the Thomson-East Coast Line. It is also close to several schools, ie: Chung Cheng High School (Main), Tanjong Katong Girls’ School, and Tanjong Katong Primary School, making it popular among tenants working/studying in the area.
The Jalan Tembusu site is opposite the upcoming Tembusu Grand, City Developments’ (CDL) 638-unit condo, which is slated to launch soon. CDL was awarded the 99-year leasehold GLS site in January 2022 for $768 million, or $1,302 psf ppr.
Bidders of the Jalan Tembusu site can look to Tembusu Grand’s launch to gauge demand for homes in the area. Huttons Asia senior director of research Lee Sze Teck also notes that there could be potential pent-up demand for larger projects in the Katong area, as there hasn’t been 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. The Continuum, a freehold 807-unit joint venture project by Hoi Hup Realty and Sunway Development, is anticipated to launch in 1Q2023. This was purchased for $815 million or $1,440 psf ppr. Grand Dunman, a 1,008-unit project by SingHaiyi Group along Dunman Road, will launch near the end of 2Q2023 to early 3Q2023.
Given the size of the Jalan Tembusu site, Tan believes developers will form consortiums to share bidding costs and reduce the project’s risks. He projects 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, strong demand for ECs in the area is evidenced by the success of the 618-unit EC Tenet, which launched in December 2022 and now only has 10 units left for sale. Tan expects “healthy interest” from developers, with around four to seven bids and 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.
Together, the two 99-year leasehold sites can yield around 1,540 homes. Given the successful EC and condo launches in the past year and the lack of available new supply, Tan believes that the two sites will draw good response from developers.