The recent tender for the Government Land Sale (GLS) site at Tengah Gardens Avenue has closed, with three bids received. The top bid of $675 million, submitted by a Hong Leong-led consortium, was $821 psf per plot ratio (ppr). The 99-year leasehold site, zoned for “Residential with Commercial at 1st storey”, spans approximately 273,906 sq ft and has a maximum gross floor area (GFA) of 821,720 sq ft. According to URA, the site has the potential to yield up to 860 residential units.
If awarded, the Hong Leong-led consortium plans to build an 860-unit condo, taking advantage of the upcoming Jurong Region Line (JRL) that will enhance connectivity in the area. Loke Kee Yeu, general manager (Projects) at Hong Leong Holdings Limited, believes that the JRL will contribute to the development of the new Tengah estate.
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The Tengah Gardens Avenue site is strategically located near the upcoming Hong Kah MRT Station on the JRL, making it just one stop away from the upcoming Tengah Town Centre and providing a direct route to the second CBD at Jurong Lake District.
The top bid of $821 psf ppr for the Tengah Gardens Avenue site was only 0.73% higher than the second-place bid of $815 psf ppr, submitted by Chinese developer Kingsford Group. Local developer Sim Lian Group submitted the third and final bid of $812 psf ppr. This close bid price spread of less than 1% suggests that developers are adopting a more cautious approach in their bids, despite the increased homebuyer activity seen towards the end of 2024.
According to Leonard Tay, head of research at Knight Frank Singapore, developers may be focusing on existing sites that are scheduled for launch in 2025, leading to the low number of bids for the Tengah Gardens Avenue site. Mark Yip, CEO of Huttons Asia, believes that developers are also mindful of keeping their land bids reasonable to maintain an attractive selling quantum for buyers. He also expects to see more joint bids from developers this year as a means of diversifying risk.
The availability of other nearby GLS sites may have also reduced the bidding interest for the Tengah Gardens Avenue site. Justin Quek, CEO of OrangeTee & Tie, notes that developers could be considering bidding on a different GLS site along Lakeside Drive and Lakeside MRT, scheduled to launch in April 2025.
If awarded, the Tengah Gardens Avenue site will be the first private residential site (excluding Executive Condominiums) in the Tengah HDB township. The first EC in the estate, Copen Grand, was launched for sale in 2022 and sold out within a month. The 639-unit project was jointly developed by City Developments Ltd (CDL) and MCL Land, who secured the EC site with a winning bid of $400.32 million, or $603 psf ppr, in May 2021.
ERA’s Marcus Chu believes that the Hong Leong-led consortium may have been attracted to the opportunity to launch the first private condo in the new Tengah estate, following their successful forays into other sites in Lentor, Upper Thomson, and Bugis.
With the site situated within 2km of the future Anglo-Chinese School (Primary), PropNex CEO Ismail Gafoor believes that 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 reach around $2,000 psf.