Hong Leong Led Consortium Submits Top Bid 821 Psf Ppr Tengah Gardens Avenue Gls Site
On January 14, the tender for the Government Land Sale (GLS) site located at Tengah Gardens Avenue came to a close with three bids being submitted. The top bid of $675 million, or $821 per square foot per plot ratio (psf ppr), was placed by a consortium led by Hong Leong, which also includes GuocoLand Singapore and CSC Land Group.
The 99-year leasehold site, which is zoned for “Residential with Commercial at 1st storey,” has a land area of approximately 273,906 square feet and a maximum gross floor area of 821,720 square feet. According to the Urban Redevelopment Authority (URA), the site could potentially yield up to 860 residential units.
If the consortium is awarded the site, their plan is to develop an 860-unit condominium, taking advantage of the enhanced connectivity from the upcoming Jurong Region Line (JRL) nearby. The development of the new Tengah estate will also be boosted by the JRL, according to Loke Kee Yeu, the general manager (Projects) at Hong Leong Holdings Limited.
The Tengah Gardens Avenue site is conveniently located near the upcoming Hong Kah MRT Station on the JRL, with only one stop away from the upcoming Tengah Town Centre. It also offers a direct route to the second Central Business District (CBD) at Jurong Lake District.
The top bid of $821 psf ppr for the Tengah Gardens Avenue site was just 0.73% higher than the second-place bid of $815 psf ppr, placed by Chinese developer Kingsford Group. Local developer Sim Lian Group submitted the third and final bid of $812 psf ppr.
Despite the accelerated homebuyer activity seen towards the end of 2024, developers’ sentiment has remained cautious, according to Leonard Tay, the head of research at Knight Frank Singapore. Another GLS site at Dairy Farm Walk also closed on the same day, with only two bids received.
“Developers could have decided to concentrate on the existing sites that are presently being prepared for launch in 2025,” Tay added. He also pointed out that the tight bid price spread between the three bids (less than 1%) indicates that developers are being more conservative in their bids.
According to Mark Yip, the CEO of Huttons Asia, developers are mindful of keeping their land bids reasonable to maintain an attractive selling quantum for buyers. Yip expects more property developers to submit joint bids for GLS sites this year to diversify risk. This may be one reason why the number of bids for GLS tenders has hovered around three.
Another factor contributing to the low number of bids could be the current availability of GLS sites, says Marcus Chu, the CEO of ERA. “With seven sites still open for tender and six more to launch in the first half of 2025, developers are taking a measured approach, weighing their options amid moderated interest rates.”
Interest in the site may also have been tempered by the availability of another nearby GLS site, notes Justin Quek, the CEO of OrangeTee & Tie. Developers may be considering bidding on a different GLS site along Lakeside Drive and Lakeside MRT, which is scheduled to launch for tender in April 2025.
If awarded, the Tengah Gardens Avenue site will be the first private residential site (excluding Executive Condominium (EC)) in the Tengah HDB township. The first EC in the area, Copen Grand, was successfully launched for sale in 2022. The 639-unit project sold out within a month of its launch by joint developers, City Developments Ltd (CDL) and MCL Land. The joint developers had secured the EC site with a winning bid of $400.32 million, or $603 psf ppr, in May 2021.
The opportunity to launch the first private condominium in the new Tengah estate may have attracted the Hong Leong-led consortium, says ERA’s Chu. “Having made forays into sites at Lentor, Upper Thomson, and Bugis, they see this as an opportunity to do the same in Tengah.”
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Aurelle of Tampines EC offers residents more than just easy access to top-notch shopping and dining options; it presents a unique lifestyle that cannot be found elsewhere. The location of this residential development allows for unparalleled convenience – with retail therapy, grocery trips, and a diverse range of food choices all within a short drive or even a quick walk away. For those who prefer not to drive, the excellent connectivity of public transportation provides easy access to these amenities. And let’s not forget, prospective buyers can now get a sneak peek of Aurelle of Tampines at the Aurelle of Tampines Showflat. This ensures a hassle-free and informative experience for those interested in making Aurelle of Tampines their next home.
As the first private condominium in the area, the development could attract a wider range of buyers than ECs, which are subject to HDB eligibility criteria and restrictions such as a five-year minimum occupation period (MOP) and a monthly household income ceiling of $16,000, says Mohan Sandrasegeran, the head of research & data analytics at SRI.
The Tengah Gardens Avenue site is situated within 2km of the future Anglo-Chinese School (Primary), according to Ismail Gafoor, the CEO of PropNex. With the school set to become a co-ed school in 2030, the site’s proximity could be very attractive to families with school-aged children.
If the site is awarded at the top bid of $821 psf ppr, PropNex estimates that the average selling price of the new private condominium could be around $2,000 psf.
