First GLS site in Toa Payoh in eight years attracts $968 mil bid from CDL, Frasers Property, and Sekisui House

Major property developers CDL, Frasers Property and Sekisui House have jointly submitted the highest bid of $968 million ($1,360 psf ppr) for a Government Land Sales (GLS) site at Lorong 1 Toa Payoh. According to property experts, the appeal of the site is “evident” because of its mature residential location and the potential demand it can generate for new condo units.

A rare opportunity has arisen for three major property developers to submit a joint bid of $968 million for a Government Land Sales (GLS) site at Lorong 1 Toa Payoh. CDL, Frasers Property and Sekisui House partnered together to bid for the highly sought-after 1.57ha site located at the junction of Lorong 1 and Lorong 4 Toa Payoh. This translates to a land rate of $1,360 psf per plot ratio (ppr).

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According to a press release from CDL, the joint venture is split between the three property giants at 50:25:25, respectively. If successful in the bid, they intend to develop a residential project comprising two blocks of 40 storeys with close to 800 residential units. CDL’s group CEO Sherman Kwek commented, “We are delighted to be the top bidder for this rare District 12 site and honoured to have our first collaboration with Frasers Property and Sekisui House.”

The tender of this GLS site was batched with two other GLS sites — one at Clementi Avenue 1 and another at Pine Grove (Parcel B). The land parcels at Lorong 1 Toa Payoh and Pine Grove (Parcel B) attracted three bids each, while the land parcel at Clementi Avenue 1 attracted six bids.

Leonard Tay, head of research at Knight Frank Singapore, noted that despite the seemingly lower participation rate compared to 2021 GLS tenders, “developers were willing to place bullish bids in order to secure top position”. This was evident in the case of Lorong 1 Toa Payoh where the joint bid from CDL, Frasers Property, and Seikisui House is 18% higher than the next highest bid of $819.99 million ($1,153 psf ppr).

The last GLS site granted in Toa Payoh was eight years ago, and has since been developed into Gem Residences by Gamuda Land and Evia Real Estate. When the previous GLS site was awarded, the winning bid was $345.86 million ($755 psf ppr).

Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc (SRI), believes the appeal of the latest GLS site at Lorong 1 Toa Payoh is “evident” given the allure of its mature residential location and the dearth of new project launches in the area. The site is close to Braddell MRT Station and Toa Payoh has since generated several million-dollar HDB resales in recent years.

Justin Quek, deputy CEO of OrangeTee&Tie, believes the number of bids were below their expectations, while Wong Siew Ying, head of research and content at PropNex Realty, had anticipated the site to appeal to more developers.

EdgeProp’s Landlens tool estimates a selling price of $2,535 psf for the new development. When developed, this rare opportunity to deliver an iconic residential development in the highly established and popular Toa Payoh estate will potentially generate pent-up demand (for new condo units) and development potential within the area.