Tender launched for GLS sites at Clementi Ave 1 and Pine Grove
By Timothy Tay
/ EdgeProp Singapore |
The Clementi Ave 1 site is located between two recently completed projects — The Clement Canopy and Clavon, both projects by UOL Group.
The URA has launched the tender for two Government Land Sales (GLS) sites at Clementi Avenue 1 and Pine Grove (Parcel B) under the Confirmed List of the 2H2023 GLS programme.
The Clementi Avenue 1 site is 144,734 sq ft (1.34ha) and could yield a 500-unit development, while the 269,422 sq ft (2.5ha) site at Pine Grove could yield a 565-unit development.
According to Lee Sze Teck, senior director, data analytics, at Huttons Asia, developers have been more cautious when considering GLS tenders this year amid concerns over continued economic uncertainties and high development costs.
“Moreover, these two sites are relatively close to each other, increasing the chances of an overlap in residential catchment areas that might possibly impact the take-up rate,” he says, adding that developers with a more pressing need to replenish their landbanks may be the ones to tender for these GLS sites.
The Clementi Ave 1 site is located between two recently completed projects — The Clement Canopy and Clavon, both projects by UOL Group. The developer was awarded The Clementi Canopy site in December 2015 at a land rate of $615 psf per plot ratio (ppr), and the Clavon site in July 2019 at $788 psf ppr.
Justin Quek, deputy CEO of OrangeTee & Tie, expects that when the Clementi Ave 1 site is developed, the resulting project will still resonate strongly among homeowners, especially families with school-going children. Nearby schools include Nan Hua High School, Clementi Primary School, Pei Tong Primary School, Clementi Town Secondary School, NUS High School of Mathematics and Science, Singapore Polytechnic, and the National University of Singapore (NUS).
“Given that the site can yield around 500 units and the land cost is likely to be palatable, we expect healthy demand from developers,” says Quek. He expects strong pent-up demand for new private homes since recent projects in the vicinity are either fully sold or left with a handful of unsold units.
The Pine Grove (Parcel B) site is located beside the 520-unit Pinetree Hill by UOL Group, which launched the project in July this year. Pinetree Hill has since sold 151 units at an average of $2,369 psf.
This will likely result in more cautious bidding for this site “in view of competing supply from the adjacent project, Pinetree Hill”, says Wong Siew Ying, head of research and content at PropNex Realty. She estimates that the site could attract up to three bids, with a top bid coming in at around $623 million to $679 million, which translates to a land rate of $1,110 psf ppr to $1,200 psf ppr.
The tender for both sites will close on Nov 7. This tender will be batched with an upcoming residential site at Lorong 1 Toa Payoh, under the 2H2023 Confirmed List, that will be released next month.
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