The Urban Redevelopment Authority (URA) has just launched the land tender for a land parcel at Lorong 1 Toa Payoh under the 2H 2023 Government Land Sales (GLS) programme. The site has an estimated area of 1.57ha, and at a Gross Plot Ratio (GPR) of 4.2, can yield an estimated 775 housing units.
We expect the upcoming project at Lorong 1 Toa Payoh to be popular among families as it is surrounded by many schools like Raffles Girls School (Secondary), Raffles Institution, Pei Chun Public School, Beatty Secondary School, CHIJ Primary (Toa Payoh), CHIJ Secondary (Toa Payoh), Guangyang Primary School, Guangyang Secondary School, and Kheng Cheng School. There are plenty of amenities such as markets, polyclinics, sports facilities and hawker centres nearby. The site is a short walk from Braddell MRT station on the North-South Line.
Opposite the site, another GLS project, the current Gem Residences, was awarded in June 2015 at a land rate of S$755 psf ppr. Gem Residences was launched in 2016, indicating that private home supply is limited in Toa Payoh and there will be pent-up demand.
Moreover, many HDB resale flats in Toa Payoh yielded higher prices, with flats below 20 years of age transacting at a median price of S$855,000 (84 units) in the first six months of 2023. This may support the upgrading aspirations of homeowners in Toa Payoh who may look to upgrade within the same neighbourhood.
We anticipate healthy demand from developers given the strong attributes of the site, which is well-located with ample amenities nearby. We anticipate5 to 8 bidders, with the highest bid price at around $1,100 to S$1,250 psf ppr.