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

Two residential sites under the 1H2023 Government Land Sales (GLS) Programme have been launched for sale on March 14. With these two 99-year leasehold sites, an estimated 1,540 homes can be generated. Located at Jalan Tembusu and Tampines Street 62 (Parcel B) , the tender for these land parcels will close on July 18.

The Jalan Tembusu site has a gross plot ratio of 3.5 and spans 20,572.1 sqm (221,436 sq ft). With a maximum gross floor area of 72,003 sqm (775,034 sq ft), it can yield around 840 housing units.

Meanwhile, the Tampines Street 62 (Parcel B) site is larger at 28,000.2 sq m (301,392 sq ft), with a gross plot ratio of 2.5 giving it a maximum GFA of 70,001 sq m (753,484 sq ft). This can result in approximately 700 housing units.

OrangeTee & Tie CEO Steven Tan notes the Jalan Tembusu site’s advantageous location, being near to the upcoming Tanjong Katong MRT Station The Myst on the Thomson-East Coast Line and close to several schools like Chung Cheng High School (Main), Tanjong Katong Girls’ School, and Tanjong Katong Primary School.

Furthermore, it is opposite to Tembusu Grand, City Developments’ (CDL) 638-unit condo which is expected to launch this quarter. The Jalan Tembusu site thus offers potential-seekers potential and pent-up demand for larger projects in the Katong area.

Lee Sze Teck, senior director of research at Huttons Asia, suggests bidders will assess demand in the area by looking towards the Tembusu Grand launch. There are also two other sites in close proximity, The Continuum and Grand Dunman, which are expected to launch this year.

Given the size of the Jalan Tembusu site, OrangeTee & Tie’s Tan believes developers would form consortiums to lower risks and costs in the bidding process. He expects two to five bids with a selling price of between $1,300 to $1,380 psf ppr.

Regarding the Tampines Street 62 (Parcel B) site, Tan predicts four to seven bidders to take an interest. It is next to Tenet, an EC with only 10 units left for sale, which demonstrates high demand for these types of projects in the area. The site is also close to a mixed-use GLS plot at Tampines Avenue 11, indicating potential interest from developers.

Final bid prices are set to be between $630 to $680 psf ppr with a predicted selling price of between $1,380 to $1,450 psf for the EC. As such, Tampines Street 62 (Parcel B) presents considerable potential for potential-seekers.