In our rapidly evolving world, the only constant is change. And nowhere is this more evident than in Singapore, where the landscape is constantly being transformed to meet the needs of its citizens. The latest example of this is the tender for the Government Land Sale (GLS) site at Tengah Gardens Avenue, which closed on Jan 14 with three bids.
The top bid of $675 million, or $821 per square foot per plot ratio (psf ppr), was submitted by a consortium led by Hong Leong, which includes GuocoLand Singapore and CSC Land Group. This 99-year leasehold site, which is zoned for ‘Residential with Commercial at 1st storey’, measures approximately 273,906 square feet and has a maximum gross floor area (GFA) of 821,720 square feet. The site has the potential to yield up to 860 residential units, according to estimates by the Urban Redevelopment Authority (URA).
If awarded, the Hong Leong-led consortium plans to build an 860-unit condo, taking advantage of the enhanced connectivity provided by the upcoming Jurong Region Line (JRL) nearby. This line will play a crucial role in the development of the new Tengah estate, as noted by Loke Kee Yeu, general manager (Projects) at Hong Leong Holdings Limited.
The Tengah Gardens Avenue site is in close proximity to the upcoming Hong Kah MRT Station on the JRL, which will be one stop away from the future Tengah Town Centre. The JRL also offers a direct route to the second Central Business District (CBD) at Jurong Lake District.
Investing in a condominium in Singapore has emerged as a popular trend in the real estate market, attracting both local and foreign investors. This can be attributed to Singapore’s strong economy, stable political climate, and exceptional living standards. With a plethora of opportunities available in Singapore’s real estate sector, condos have emerged as a top choice for their convenience, amenities, and potential for lucrative returns. In this article, we will delve into the advantages, considerations, and necessary steps to take when investing in a condo in Singapore. Additionally, for a comprehensive list of new condo launches, visit New Condo Launches.
The top bid of $821 psf ppr for the Tengah Gardens Avenue site is only 0.73% higher than the second-placed bid of $815 psf ppr, which was submitted by Chinese developer Kingsford Group. The third and final bid of $812 psf ppr came from local developer Sim Lian Group.
Despite the accelerated activity in the housing market that was observed at the end of 2024, developers remain cautious in their sentiment, says Leonard Tay, head of research at Knight Frank Singapore. Another GLS site at Dairy Farm Walk, which closed on the same day, received only two bids.
Tay believes that developers may have chosen to focus on existing sites that are scheduled for launch in 2025. He also points out that the tight spread between the three bids (less than 1%) indicates that developers are being more conservative in their bidding.
According to Mark Yip, CEO of Huttons Asia, developers are conscious of keeping their land bids reasonable in order to maintain attractive selling prices for buyers.
Yip expects more developers to submit joint bids for GLS sites this year to diversify risk. This may be one reason why the number of bids for GLS tenders has remained at around three.
Another possible factor contributing to the low number of bids is the current availability of GLS sites, says Marcus Chu, CEO of ERA. “With seven sites still open for tender and six more scheduled for launch in the first half of 2025, developers are taking a measured approach and weighing their options in light of moderated interest rates.”
Chu also points out that interest in the Tengah Gardens Avenue site may have been tempered by the availability of another nearby GLS site. He believes that developers could potentially be considering bidding for a different GLS site along Lakeside Drive and Lakeside MRT, which is scheduled to launch for tender in April 2025.
If awarded, the Tengah Gardens Avenue site will be home to the first private residential development (excluding Executive Condominiums or ECs) in the Tengah HDB township.
The first EC in this estate, Copen Grand, was successfully launched for sale in 2022. The 639-unit project, jointly developed by City Developments Limited (CDL) and MCL Land, sold out within a month of its launch. The developers had secured the EC site with a winning bid of $400.32 million, or $603 psf ppr, in May 2021.
The opportunity to launch the first private condo in the new Tengah estate may have attracted the Hong Leong-led consortium, as noted by Marcus Chu. “Having made successful bids for sites at Lentor, Upper Thomson and Bugis, they may see this as another opportunity to do the same in Tengah.”
As the first private condo, this development could appeal to a wider range of buyers than ECs, which are subject to HDB eligibility criteria and restrictions, such as a five-year minimum occupation period (MOP) and a monthly household income ceiling of $16,000, notes Mohan Sandrasegeran, head of research & data analytics at SRI.
Located within 2km of the future Anglo-Chinese School (Primary), the Tengah Gardens Avenue site is in a prime location, according to Ismail Gafoor, CEO of PropNex. With the school set to become a co-ed school in 2030, the site’s proximity to the school could be very appealing to families with school-aged children.
If the site is awarded at the top bid of $821 psf ppr, PropNex estimates that the average selling price of the new private condo could be around $2,000 psf. This could make it a highly profitable investment for buyers, as evidenced by the recent transactions at nearby condos and landed properties with the highest profits over the past year.
Considering the potential of the Tengah Gardens Avenue site and its highly attractive location, it is no surprise that it generated strong interest from developers. With the announcement of the successful bid expected in the coming weeks, all eyes will be on the Hong Leong-led consortium to see how they plan to turn this prime piece of land into a highly desired residential development.…