Key Considerations
Developers may be keeping their eyes on some key developments that may influence their bids.
The doubling of tariffs to 50% on steel and aluminium exports to the US may lead to excess capacity in Asia and lower steel prices in Singapore.
Interest rates may potentially rise in the months ahead if inflation increases. Liquidity may also be tightened. This may affect developer’s margins.
There were quite a number of attractive sites which the Government will offer for sale under the 2H 2025 GLS programme. Land parcels in the Kallang and Tanjong Rhu area are seldom available and may see some developers sitting out some tenders to focus on them.
The draft Master Plan 2025 may reveal transformative plans for certain areas which may boost interest and influence bids.
Dorset Road
The Dorset Road site is in a city fringe location and a short walk to Farrer Park MRT station. The CTE is a short drive away. Farrer Park Primary School is less than 500m away.
This area usually sees more boutique projects and there is strong demand for bigger projects. The last major project in the area, Piccadilly Grand sold 77% of its units on launch weekend, reflecting strong interest for bigger projects and living in the area.
It may see around 3 bidders and a top bid of $950 to $1,050 psf ppr.
Telok Blangah Road
The Telok Blangah Road GLS site is the first site to be launched for sale in the Greater Southern Waterfront. It is also the first GLS site in Telok Blangah after 35 years. The last GLS site sold was Harbour View Towers in 1990.
The Greater Southern Waterfront is a highly anticipated transformation project for Singapore. It will be part of the 120km southern coastline announced during the National Day Rally in Aug 2024.
Transport options for the site are excellent with a bus stop at its doorstep and Telok Blangah MRT station less than 300m away. The Harbourfront precinct, Mapletree Tree Business City and Pasir Panjang Power District are a MRT stop away. The proposed redevelopment of Harbourfront Centre will increase the supply of office space and bring more jobs closer to the site.
It may potentially see the same amount of interest as the Bayshore Road GLS site and attract a top bid of $1,200 to $1,300 psf ppr.
Upper Thomson Road (Parcel A)
With no obligation to provide SA2 in the Upper Thomson Road (Parcel A) GLS site, it should attract steady interest from developers.
The site is directly above Springleaf MRT station on the Thomson East Coast line (TEL) which connects the Northern part of Singapore to the Central and East. This makes it convenient for residents to move to different parts of the island.
The commercial space at Parcel A will provide much-needed amenities, boosting the appeal of staying in this private residential enclave near vast stretches of greenery.
Bids for the site will be competitive, taking into account the upcoming 941-unit Springleaf Residence and estimated 600 unsold units from projects in Lentor and an upcoming GLS tender in Lentor Gardens.
It may attract up to 3 bidders and a top bid between $900 and $950 psf ppr.
