The Urban Redevelopment Authority (URA) has just closed the tender for the site at Jalan Tembusu.
Demand was within our earlier expectations for the site with 2 bids. The highest bid was from Sim Lian Land Pte Ltd and Sim Lian Development Pte Ltd at S$828,800,000, or S$1,069.36 psf ppr. The highest bid was only 0.1 per cent higher than the other bid, and fell below our expectations. The most recent land parcel in the area was the site at Dunman Road, which had a bid price of S$1,350 psf ppr, which was awarded in June 2022. The difference in the bid prices could be due to the changes in policies regarding the floor area harmonisations which came into effect from 1 June 2023, which may result in smaller efficiencies.
Recent launches like Tembusu Grand, The Continuum, and Grand Dunman saw good sales, indicating that this area is highly popular among Singaporeans. This land parcel is in close proximity to a number of schools including Chung Cheng High School (Main), Tanjong Katong Girls’ School, Tanjong Katong Primary School, and Tanjong Katong Secondary School may lead to future demand from families. Rental demand may also come from tenants working or studying in the nearby Canadian International School.