The URA has announced a solicitation for tenders to purchase two Government Land Sales (GLS) sites located at Clementi Avenue 1 and Pine Grove (Parcel B) in the Confirmed List for the 2H2023 GLS program.
Clementi Avenue 1 site Clementi Avenue 1 site is approximately 144,734 square feet (1.34ha) which could result in an area of 500 units, whereas the 269,422 square feet (2.5ha) site at Pine Grove could result in five65 units.
Based on Lee Sze Teck, senior director of data analytics for Huttons Asia, developers have been more cautious in evaluating GLS offers this year due to worries about the lingering economic uncertainty and the high costs of development.
“Moreover the two sites are located close to one another and this increases the chance of a cross-over in catchment areas for residential development that could affect the amount of land that is taken up,” he says, noting that developers who have a greater demand to refill their bank accounts could be the ones who offer for the GLS sites.
It is the Clementi Ave 1 site is situated between two projects that have been completed recently -The Clement Canopy and Clavon. the Clement Canopy and Clavon Both projects are owned by UOL Group. This developer was awarded the Clementi Canopy site in December 2015 for a land price of $615 per sq ft in plot ratio (ppr) and The Clavon site on July of 2019 at $788 psf per plot ratio.
Justin Ong, deputy CEO of OrangeTee & Tie, expects that once it comes to the Clementi Ave 1 site is completed, the project will continue to resonate for homeowners, particularly families with children in school. Schools nearby comprise 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 NUS, the National University of Singapore (NUS).
“Given there is a chance that the site is expected to yield about 500 units and that the costs of the land are likely to be affordable We expect a strong market demand for developers,” says Ong. Ong anticipates a strong demand for private residences as recent developments in the vicinity are completely sold out or have unfinished units
Pine Grove (Parcel B) is a Pine Grove (Parcel B) site is located next to 522-unit Pinetree Hill by UOL Group, which launched the project in July of this year. Pinetree Hill has since sold 151 units for an average of $2,369 for each square foot.
This could lead to the bids being more cautious for the site “in the light of competition bids from the project adjacent, Pinetree Hill”, says Wong Siew Ying, head of content and research of PropNex Realty. She believes it is possible that the site could be the subject of at least three bids the highest price of $600 million to $779 million that’s the land cost of $1,110 per sq ft ppr up to $1,200 per sq ft ppr.
This tender will be open for both sites will be closed on November 7. The tender will be matched along with an upcoming residential site located in Lorong 1. Toa Payoh, under the 2H2023 Confirmed List that will be announced in the coming month.