Knight Frank Commentary | Tender Closing for Lorong Puntong/Sin Ming Avenue GLS Site

Well-located residential plots in established residential neighbourhoods continue to attract developer participation. The Lorong Puntong/Sin Ming Avenue drew seven bids, with a top bid of S$208.1 million, or approximately S$1,612 psf per plot ratio (ppr). The number of bids is consistent with expectations given the site's relatively small scale and corresponding palatable ticket-size. The estimated 140-unit development and more manageable capital outlay when compared to the recent tenders of much larger sites encouraged a wider pool of interested bidders. The top bid came in above expectations, some 28.3% higher than the lowest bid. This suggests that the top bidder attributes a much stronger strategic value to the location than the rest of the field.

The site is one of a few residential sites released in the Thomson-Bishan area in recent years, benefits from proximity to Ai Tong School and is within walking distance of Bright Hill MRT Station. Bright Hill MRT Station currently serves the Thomson-East Coast Line and is planned to become an interchange with the Cross Island Line, enhancing connectivity across Singapore without requiring travel through the city centre. This effectively increases the site's catchment and broadens its appeal for owner-occupiers. The compact land parcel allows for a relatively efficient development with comparatively less execution risk compared with larger government land sales (GLS) plots.

Demand in the surrounding area should be supported by both owner-occupiers and local wealth from the broader Thomson and Upper Thomson catchment. The neighbourhood contains substantial landed housing stock, where a boutique-sized project can be attractive to potential rightsizers seeking to remain within the same locality while reducing housing maintenance burdens.