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Top Bid at Toa Payoh Lorong 1 submitted by CDL, Frasers and Sekisui House
“In a remarkable turn of events, the first Government Land Sales (GLS) site in Toa Payoh in nearly a decade has ignited fierce competition among major property developers. City Development Ltd (CDL), Sekisui House and Frasers Property have jointly submitted a groundbreaking bid of $968 million for this coveted 1.57-hectare site at the junction of Lorong 1 and Lorong 4 Toa Payoh. Their bid equates to an impressive $1,360 per square foot per plot ratio (psf ppr).
This collaborative effort, comprising CDL, Frasers Property, and Sekisui House, marks a significant milestone for these industry giants. Sherman Kwek, the Group CEO of CDL, expressed his delight at securing the top bid, emphasizing their first-ever collaboration with Frasers Property and Sekisui House. He envisions the creation of an iconic residential development in the highly sought-after Toa Payoh estate, and with their collective expertise, this vision appears promising.
TOP Bid submitted by CDL JV
The strength of this bid stands out, being a remarkable 18% higher than the next highest offer of $819.99 million, which was submitted by Tanglin Land, a subsidiary of CapitaLand. It’s worth noting that it has been a long eight years since the last GLS site was made available in Toa Payoh. The adjacent land parcel, awarded to Gamuda Land and Evia Real Estate, has since evolved into the Gem Residences.
Should CDL, Frasers Property, and Sekisui House secure the bid, their plans are ambitious. They aim to develop a residential project consisting of two towering blocks, each soaring 40 storeys high, offering nearly 800 residential units. The allure of this mature residential location in Toa Payoh, coupled with the dearth of new project launches in the area, has undoubtedly piqued the interest of developers.
Furthermore, the site’s strategic proximity to Braddell MRT Station, a single stop away from Bishan MRT Interchange on the North-South and Circle Lines, adds to its appeal. Toa Payoh has also witnessed a surge in million-dollar HDB resales, with 49 such transactions recorded in the first ten months of the current year. This trend underscores the potential demand for the upcoming development on the Lorong 1 Toa Payoh site.
While the number of bids may have been lower than expected, the top bid exceeding initial estimations showcases the confidence of developers in this remarkable opportunity. Perhaps some developers exercised caution due to the large size of the land parcel, possibly considering smaller plots in future land sales exercises.
As the development plans unfold, industry experts believe that the average selling price for the new project could range between $2,400 and $2,500 per square foot. This aligns with EdgeProp Singapore’s estimate, using their proprietary Landlens tool, projecting an estimated selling price of $2,535 per square foot for the forthcoming development.
In summary, the fervor surrounding this GLS site in Toa Payoh reflects the renewed interest in this well-established estate and the anticipation for a remarkable residential project set to redefine the landscape of the area. Developers have made their intentions clear, and Toa Payoh appears poised for a transformative renaissance.”
