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

Two residential sites with a 99-year leasehold – one at Jalan Tembusu and the other Tengah EC at Tampines Street 62 (Parcel B) – have been launched for sale under the 1H2023 Government Land Sales (GLS) Programme. Located close to an MRT Station and several amenities, these sites offer the potential to generate 1,540 homes.
The Jalan Tembusu site spans 20,572.1 sqm (221,436 sq ft) with a gross plot ratio of 3.5. It has the capacity to yield 840 housing units with a maximum GFA of 72,003 sqm (775,034 sq ft). Meanwhile, the Tampines Street 62 (Parcel B) site covers 28,000.2 sq m (301,392 sq ft). It can generate 700 units, with a gross plot ratio of 2.5 or a maximum GFA of 70,001 sq m (753,484 sq ft).

Both land parcels have a tender that closes on July 18. OrangeTee & Tie CEO Steven Tan says the Jalan Tembusu site is well-located and close to the Tanjong Katong MRT Station, as well as various schools – giving it a competitive edge.

The Tembusu Grand, City Developments’ 638-unit condo, is located opposite the Jalan Tembusu site and is slated to launch this quarter. Lee Sze Teck, senior director of research at Huttons Asia, thinks bidders will gauge demand for homes in the area from the Tembusu Grand launch. He adds that this is the first project to launch in the area since Haig Court in 2004, so there’s potential for pent-up demand.

Two other projects are expected to launch in the area this year – The Continuum and Grand Dunman. The Continuum is a joint venture project by Hoi Hup Realty and Sunway Development and the freehold site was purchased in a collective sale in November 2021. Grand Dunman, a 99-year leasehold project by SingHaiyi Group, is expected to launch near the end of 2Q2023 to early 3Q2023.

Given the size of the Jalan Tembusu site, OrangeTee & Tie’s Tan believes developers will create consortiums to share costs and reduce risks. He predicts there will be two to five bids with the highest bid being between $1,300 and $1,380 psf ppr.

The Tampines Street 62 (Parcel B) site is next to the 618-unit EC Tenet. With only 10 units left for sale, it suggests there is high demand for ECs in the area. It’s also near a mixed-use GLS plot at Tampines Avenue 11, comprising commercial and residential components integrated with a bus interchange, a community club and a hawker centre. This will be close to the Tampines North MRT station.

Given the situation, OrangeTee & Tie’s Tan expects there to be healthy interest from developers for the Tampines Street 62 (Parcel B) site. He estimates there will be four to seven bidders with a final bid price of $630 to $680 psf ppr. “The future selling price of the EC here could range from $1,380 to $1,450 psf.”
Two residential sites with a 99-year leasehold have been launched for sale under the 1H2023 Government Land Sales (GLS) Programme. With the potential to generate 1,540 homes, one site is located at Jalan Tembusu while the other is located at Tampines Street 62 (Parcel B).

The Jalan Tembusu site spans 20,572.1 sqm (221,436 sq ft) with a gross plot ratio of 3.5. It has the capacity to yield 840 housing units with a maximum GFA of 72,003 sqm (775,034 sq ft). Located close to the upcoming Tanjong Katong MRT Station and several amenities, OrangeTee & Tie CEO Steven Tan believes developers will form consortiums to share bidding costs and reduce the project’s risks. He projects the site will receive around two to five bids, with the top bid coming in between $1,300 to $1,380 psf ppr.

The Tampines Street 62 (Parcel B) site measures 28,000.2 sq m (301,392 sq ft). It can yield 700 units, with a gross plot ratio of 2.5 or a maximum GFA of 70,001 sq m (753,484 sq ft). The project is located close to the EC Tenet, which has only 10 units left for sale, showing there is strong demand for ECs in the area. It is also near a land plot earmarked for a mixed-use development on Tampines Avenue 11.

Given the successful EC project launches in the past year and the lack of available new EC supply, OrangeTee & Tie’s Tan expects “healthy interest” from developers for the Tampines Street 62 (Parcel B) site. He anticipates around four to seven bidders with a final bid price of $630 to $680 psf ppr. “The future selling price of the EC here could range from $1,380 to $1,450 psf.”

The tender for the two land parcels will close on July 18. With two projects nearby set to launch this year, potential bidders will have to consider whether there is pent-up demand for larger projects and factor that into their bids.