GLS sites on Champions Way, Lorong 1 Toa Payoh, and Punggol Walk are now available for purchase - TMW Maxwell Condo at Tanjong Pagar By Chip Eng Seng, SingHaiyi & Chuan Holdings (Hot Launch 2022)

Kim Chuan Lane offers freehold industrial property for sale for $43 million

URA has announced 3 Government Land Sale (GLS) sites under the 1H2023 GLS Program on 25 May. The three sites comprise two leasehold 99 year residential sites situated on Champions as well as Lorong 1. Toa Payoh and a short-term lease commercial site located at Punggol Walk.

The residential site located at Champions Way can be found on the Confirmed List and could potentially yield approximately 350 units. The site has an site size of 14,433 square meters (155,351 sq feet) and an area of gross floor (GFA) that is 30,309 square meters (326,243 sq feet). The minimum gross floor area (GFA) of 500 sqm (5,382 sq feet) on the site is required as a minimum for a childcare center. Tenders for this site will end on September 12.

The site located at Lorong 1 Toa Payoh is available to be accessed on the Reserve List and can potentially yield 775 units. The site is 15,743 square meters (169,456 sq feet) and has an maximum GFA of 66,121 sq meters (711,721 sq feet).

The commercial short-term lease site located at Punggol Walk is also listed in the Reserve List. The site covers 10,011.5 sq of m (107,763 sq feet) and is leased for a term of 30 years with an maximal GFA size of 14,017 square meters (15,0878 sq feet). The minimum gross floor area of 8,400 square m (90,417 sq feet) is allocated to office space, and at least 650 square meters (6,997 sq feet) is allocated to be a center for children.

According to URA the release of the site to the market is one of government’s initiatives to encourage decentralisation as well as meet the growing demands for workplaces close to homes. “The sale of sites that are lease-based lets our land uses be renewed in shorter intervals to help businesses adapt their operations to changes in economic trends and market trends,” it states in the press release.

Champions Way site – first GLS residential launch since 2011.
The site at Champions Way is the first GLS launch in Woodlands (excluding executive condominiums) since 2011, when the plot at Woodlands Avenue 2 and Rosewood Drive was purchased for $367 per sq ft for a plot-to-plot ratio (psf or ppr) and later transformed into the 6-unit Park Rosewood.

The Champions Way site is set amongst mature and brand new HDB blocks. Eugene Lim, key executive officer and director of market research and information within ERA Realty Network, views as a positive factor in demand to the development that is coming. He notes that HDB flat resales in Woodlands experienced an increase of 14.2% y-o-y increase last year. “The absence of any new private residential launches, coupled with the large number in HDB block in Woodlands may be a factor in the increasing demand from upgraders within the area,” he explains.

Justin Quek, deputy CEO of OrangeTee & Tie, adds that the site is located within walking distance from the Woodlands South MRT Station on the Thomson-East Coast Line. “Residents will appreciate the site easy to access and easily connected to a variety of areas on this island” Quek says. Its proximity to the forthcoming Johor Bahru-Singapore Rapid Transit Systems (RTS) could also increase the attraction of the new development for tenants who are expatriates as well as employees who have a pass from Malaysia.

The site is located within a distance of 1 km from Innova Primary School Woodgrove Primary School Si Ling Primary School, and Woodlands Primary School. It is also within walking distance of secondary schools, including Christ Church Secondary School, and Woodgrove Secondary School, and the Singapore Sports School.

Wong Siew Ying, head of content and research of PropNex Realty, expects the site to attract “a reasonable amount of attention” by developers. “A major benefit for this site is that there hasn’t been any new private residential developments in the area and this could lead to waiting for houses to be constructed,” she remarks. Wong anticipates that the site could draw anywhere from five to six bids, which could amount between $950 and $1,000 per person.

OrangeTee and Tie’s Quek predicts the same. He expects between five and eight bidders on the site which could result in a bid range of $950 and $1,050 per psf per.

Reserve List sites
PropNex’s Wong believes that the residential site located at Lorong 1. Toa Payoh will likely be activated for sale. “We expect that this site will likely to be put up to tender given that there is a shortage of private residential developments in the region The site is likely to also experience the demand for homes rise from homeowners as well as HDB upgraders as well as those looking to be near their families in the aging city of Toa Payoh,” she declares.

Lee Sze Teck, senior director of research at Huttons Asia, concurs. “If it is activated and then sold, the highest price could be higher than $1,200 per sq ft ppr,” he opines.

The most recent GLS site granted in the region is that of the Lorong 6 Toa Paioh/Lorong4 Toa Payoh plot (now Gem Residences) located across from Lorong 1 Toa Payoh. Lorong 1 Toa Payoh site. It was sold in June 2015. site is sold on June 2015 it was sold at a price at $345.86 million ($755 per square foot per) from 14 bids submitted during the auction.

For the site located at Punggol Walk, Wong’s view is that the site might attract interest even though it has a shorter lease due to the lack of office space commercially available. “The potential for commercial development may help Punggol’s Punggol Digital District in and attract tenants who would like to be situated within Punggol,” she adds.