First GLS site in Toa Payoh in eight years attracts $968 mil bid from CDL, Frasers Property, and Sekisui House

Major property developers CDL, Frasers Property and Sekisui House have banded together to submit the winning bid of $968 million for a 1.57ha residential property at Lorong 1 Toa Payoh, translating to a land rate of $1,360 psf per plot ratio (ppr). This is 18% higher than the next highest bid of $819.99 million ($1,153 psf ppr) submitted by Tanglin Land, a subsidiary of CapitaLand.The tender of this GLS site was batched with two other GLS sites, namely, Clementi Avenue 1 and Pine Grove (Parcel B). This GLS site was the only one to have attracted three bids. The other two sites received six and three bids, respectively.Justin Quek, deputy CEO of OrangeTee&Tie, believes the number of bids for this GLS site was below their expectations, though the top bid exceeded their initial estimations. Commenting on the appeal of the site, Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc (SRI) points to the allure of its mature residential location and the dearth of new project launches in the area. He adds that the extended gap will likely create pent-up demand (for new condo units).Wong Siew Ying, head of research and content at PropNex Realty, projects an average selling price of between $2,400 psf and $2,550 psf. This is close to EdgeProp Singapore’s estimate utilising our proprietary Landlens tool, which casts an estimated selling price of $2,535 psf for the upcoming development.CDL, Frasers Property, and Sekisui House have announced that if they win the bid for this GLS site, they intend to develop a residential project comprising two blocks of 40 storeys with close to 800 residential units. “We are delighted to be the top bidder for this rare District 12 site and honoured to have our first collaboration with Frasers Property and Sekisui House (…) Together with our partners, we look forward to tapping on our collective expertise to create an iconic development in the highly sought-after Toa Payoh estate,” said Sherman Kwek, group CEO of CDL. Meanwhile, Soon Su Lin, CEO of Frasers Property Singapore, added: “We look forward to this rare opportunity of delivering an iconic residential development in the highly established and popular estate of Toa Payoh.”Major property developers City Development Ltd (CDL), Frasers Property, and Sekisui House have submitted the highest bid of $968 million for a Government Land Sales (GLS) site at Lorong 1 Toa Payoh, with a land rate of $1,360 psf per plot ratio (ppr).

The joint venture is a 50:25:25 split between the three property giants who intend to develop two blocks of 40 storey residential units with close to 800 units. This is the first project the three companies are collaborating on and Sherman Kwek, group CEO of CDL, expressed his delight at the opportunity.

The appeal of the Lorong 1 Toa Payoh GLS site is “evident” with its mature residential location and the dearth of new project launches in the area. Its proximity to the Braddell MRT Station, one stop from Bishan MRT Interchange, will likely also pique the interest of potential buyers and investors.

Read also: MCL Land and CSC Land JV submit highest bid of $1,250 psf ppr for Clementi Avenue 1 GLS site

The Toa Payoh estate has experienced a considerable seven-year hiatus since the last property launch in 2016, when Gem Residences was launched. The strength of the GLS had led some market watchers to anticipate many more bids for this site; however, some developers may have been put off by its larger size and higher quantum.

Justin Quek, deputy CEO of OrangeTee&Tie said that some developers could have been cautious about the large size of this land parcel and may prefer to consider smaller plots of land in future land sales exercises, whereas Wong Siew Ying, head of research and content at PropNex Realty, added that the land parcel’s superior attributes might have deterred some developers from entering the fray.

EdgeProp’s Landlens tool estimates a selling price of $2,535 psf for the new development, echoing the estimation of Wong Siew Ying that the average selling price may range between $2,400 psf and $2,500 psf.

The retail centre also has a wide range of dining and entertainment options, and there is a shuttle bus service which links Woodlands Condo to the nearby MRT station. Residents can also enjoy a wide range of amenities, such as a swimming pool, gym, BBQ pavilion, jogging track and playground. There is also a nearby park, as well as several shops and restaurants within walking distance. With its functional layout and easy access to public transportation, Woodlands Condo provides a convenient and comfortable lifestyle for its residents.

Leonard Tay, head of research at Knight Frank Singapore, believes that despite the low number of bids, “developers were willing to place bullish bids in order to secure top position”. Together with Toa Payoh’s record of 49 million-dollar HDB resales in the first 10 months of this year, developers hope to deliver an iconic residential development at the highly established and popular estate, and tap into the pool of HDB upgraders within the Toa Payoh estate.