Comments on GLS tender launch (Tan Quee Lan Street)
March 29, 2019
Tricia Song, Head of Research for Singapore:
The Urban Redevelopment Authority (URA) has launched a residential with commercial at 1st storey site at Tan Quee Lan Street for sale by public tender on 29 March.
We expect the tender to set benchmark land pricing for a residential site the area in view of the plot’s superior city-centre location and good connectivity, being on top of the Bugis (Downtown Line & East-West Line) MRT interchange station.
It is also near the Beach Road area which is being rejuvenated, with the upcoming integrated Guoco Midtown development, and newly completed mixed-use projects such as DUO and South Beach. This site will contribute to the ongoing makeover in Beach Road and offer private housing to support the growing commercial enclave in the area.
In addition, the Tan Quee Lan Street site will not be subject to the rule on minimum unit size as it is located in the Central Area. This would give the developer a freer hand in crafting the unit-mix at the future development.
Taking a leaf from the response to the public tender for the nearby Middle Road site (which closed on 28 March 2019), we expect similarly healthy interest for the Tan Quee Lan Street plot. We project that the site could attract 10 or more bidders, with a potential top bid of SGD834 million, translating to SGD1,600 per square foot per plot ratio (psf ppr). This would be about 10% higher than the top bid for Middle Road site, as The Tan Quee Lan site is in an arguably more attractive location and more units could be built (versus 375 homes for the Middle Road site).
According to the URA, about 580 residential units can be built on the site. The serviced apartment GFA shall not exceed 14,530 sq m. A maximum of 2,000 sq m of the total GFA of the development may be developed for the following commercial uses at the 1st storey.