GLS sites at Jalan Tembusu and Tampines Street 62 launched for tender

Two residential sites have been launched under the 1H2023 Government Land Sales (GLS) Programme for sale on March 14. With a total of 1,540 homes, the two sites comprise a private residential site located at Jalan Tembusu and an executive condo (EC) site at Tampines Street 62 (Parcel B) with both sites having a 99-year leasehold. The tender for the two land parcels will close on July 18.

The Jalan Tembusu site spans 20,572.1 sqm (221,436 sq Senja Close EC ft) and has a gross plot ratio of 3.5 allowing for a maximum gross floor area (GFA) of 72,003 sqm (775,034 sq ft). It can yield a total of around 840 housing units.

On the other hand, the Tampines Street 62 (Parcel B) site measures 28,000.2 sq m (301,392 sq ft) and a gross plot ratio of 2.5 with a maximum GFA of 70,001 sq m (753,484 sq ft). This site can generate 700 units.

OrangeTee & Tie CEO Steven Tan believes the Jalan Tembusu site is advantageous due to its nearby amenities, such as the upcoming Tanjong Katong MRT Station on the Thomson-East Coast Line and several schools like Chung Cheng High School (Main), Tanjong Katong Girls’ School and Tanjong Katong Primary School.

Location plan for Jalan Tembusu land parcel (Source: URA)

The close proximity of the Jalan Tembusu site to the soon-to-be-launched Tembusu Grand, City Developments’ (CDL) 638-unit condo may bring potential to bid winners. CDL had been awarded the 99-year leasehold GLS site in January 2022 for $768 million, or $1,302 psf ppr.

Lee Sze Teck, senior director of research at Huttons Asia, believes bidders for the Jalan Tembusu site will observe the Tembusu Grand’s launch to gauge demand for properties in the area. Furthermore, the Katong area has not seen any project launches with land size larger than 200,000 sq ft since Haig Court in 2004, which could explain the pent-up demand for larger projects.

Two other sites nearby are also expected to launch this year. The Continuum, an 807-unit joint venture project by Hoi Hup Realty and Sunway Development, is expected to launch in 1Q2023. Grand Dunman, a 1,008-unit project by SingHaiyi Group along Dunman Road, could launch sometime in 2Q or 3Q2023.

Given the large size of the Jalan Tembusu site, OrangeTee & Tie’s Tan believes consortiums of developers will have to be formed to bid for the site and reduce the project’s risks. He expects the site to receive two to five bids with the top bid ranging from $1,300 to $1,380 psf ppr.

The Tampines Street 62 (Parcel B) site is placed next to the Tenet EC which has already been launched in December 2022, leaving only 10 units for sale. This has led to the assumption that high demand for ECs exists in this area as shown by Huttons’ Lee.

Tampines Street 62 (Parcel B) (centre) is located next to the 618-unit EC Tenet (shown in purple). It is also close to a land plot earmarked for a mixed-use development on Tampines Avenue 11 (shown on left, in blue) (Source: EdgeProp LandLens)

The site is also close to a mixed-use GLS plot at Tampines Avenue 11 that is currently up for tender. It includes commercial and residential components as well as a bus interchange, a community club, and a hawker centre near the future Tampines North MRT Station on the upcoming Cross Island Line.

As the past year has witnessed successful EC project launches and the lack of available new EC supply, OrangeTee & Tie’s Tan expects lots of “healthy interest” from developers for the Tampines Street 62 (Parcel B) site. He predicts a total of four to seven bidders with the top bid ranging from $630 to $680 psf ppr. He further forecasts the future selling price of the EC here to be in the $1,380 to $1,450 psf range.