_GLS Tender closing for Upper Thomson Road (Parcel A)

Tender Closing for GLS Site

Upper Thomson Road Parcel A

Five bids were submitted with a top bid of S$1,062 psf per plot ratio (ppr) at the relaunched Upper Thomson Road (Parcel A) plot, after there were no bids for the site when the tender closed on 19 June 2024 due to the requirement to develop Long-Stay Serviced Apartments (SA2). The amount of interest comes in within expectations, although the top bid’s land rate is above expectations. Interest levels for non-landed residential development in the Springleaf area, where the predominant housing form is landed homes, has increased quite significantly. Previously at the Upper Thomson Road (Parcel B) tender in April 2024 (the current Springleaf Residence project launch), there was only one bid. However, with 92% of the units sold at the launch weekend of Springleaf Residence in August, developers are more keen on the location, as there is compelling evidence of homebuyer demand for non-landed homes in the area. Singapore’s residential market remains resilient, supported by low unemployment and healthy household balance sheets. With most residents remaining employed and given that strong domestic savings provide households with financial flexibility, demand for new product persists. This, in turn, incentivises developers to continue acquiring land.

The top bid of S$613.9 million or S$1,062 psf ppr and the second bid of $601.5 million or $1,040 psf ppr, outdistanced the rest of the pack that had put in bids ranging between S$934 psf ppr and S$945 psf ppr. The likely selling price for the residential units here could start from $2,300 psf to average above $2,400 psf. An average unit price level of S$2,175 psf had already been tested at Springleaf Residence. A new project here can be attractive to local homebuyers looking to downgrade from landed housing in the Springleaf vicinity, as well as HDB upgraders from the Ang Mo Kio and Yio Chu Kang estates. Homebuyers desiring to live with immediate access to an MRT station along the Thomson-East Coast Line and retail amenities, while being in close proximity to greenery could also be enticed to this project.