URA launches tender for Ang Mo Kio and Tengah GLS sites

By Valerie Kor / EdgeProp Singapore | November 26, 2020 3:25 PM SGT
Ang Mo Kio Avenue 1 GLS - EDGEPROP SINGAPORE
Source: URA
SINGAPORE (EDGEPROP) - URA and HDB have launched two 99-year leasehold residential sites for sale at Ang Mo Kio Avenue 1 and Tengah Garden Walk, under the Confirmed List of 2H2020 government land sales (GLS) programme.
The site at Ang Mo Kio Avenue 1, which is designated for condominium development, measures 136,480 sq ft, with a maximum gross floor area (GFA) of 341,205 sq ft. It is the latest GLS site in the Ang Mo Kio area in six years, says Wong Siew Ying, head of research and content at PropNex.
The previous GLS site was the Lorong Puntong site, where Thomson Impressions now is, which was awarded in October 2014 for $173.6 million or $731 psf per plot ratio (ppr). Before that, the Ang Mo Kio Avenue 2/Ang Mo Kio Street 13 site, which was later developed as The Panorama, was successfully tendered for $550 million ($790 psf ppr) in January 2013.
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As both sites drew overwhelming response, with Thomson Impressions’ site attracting 18 bids and The Panorama’s site attracting 12 bids, Wong believes that this new GLS site will also be popular. She expects more than 10 bidders for the Ang Mo Kio site, with the top bid at $273 million to $290 million or about $800 to $850 psf ppr.
Nicholas Mak, head of research at ERA, projects that the top bid could fall between $303 million and $313.9 million, which translates to a land rate of $890 to $920 psf ppr.
“Apart from being in a mature town and an established residential area, the plot is also near the upcoming Mayflower MRT Station on the Thomson-East Coast Line, which is estimated to be ready around 2021,” PropNex's Wong adds.
Tengah Walk EC site - EDGEPROP SINGAPORE
Source: URA
On the other hand, the GLS executive condominium (EC) site at Tengah Walk measures 237,032 sq ft. With 663,691 sq ft of maximum permissible GFA, ERA’s Mak projects that it will have around 615 residential units.
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As the site is in a non-mature estate, the successful tenderer could gain a first-mover advantage when it enters the market, reckons PropNex's Wong.
“The government has announced plans to turn Tengah into a smart and sustainable town, with green features and smart technologies. The emerging Jurong Innovation District advanced manufacturing hub in the west would also help to attract investments and create jobs in the area,” she adds.
The Tengah Garden Walk EC site would likely be served by the new Jurong Region Line which is slated to open progressively from 2026, and be near to Hong Kah and Tengah Plantation MRT Stations.
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HDB has already launched built-to-order (BTO) flats for sale in several exercises at Tengah. When completed, Tengah is estimated to provide about 42,000 new homes across five residential districts.
Mak notes that in November’s BTO exercise, the two projects Garden Court @ Tengah and Garden Terrace @ Tengah had application rates ranging from 1.4 to 4.1. “This indicates moderate buyer’s interest in Tengah despite it being an unestablished new town,” he says.
PropNex’s Wong expects the site to draw five to seven bids, with the top bid likely to be around $345 million to $365 million, or $520 to $550 psf ppr.
Mak, on the other hand, expects six to nine bids, with the top bid ranging from $331.8 million to $352 million, which translates to $500 to $530 psf ppr.
Both tenders will close on May 25, 2021.