The tender for three GLS plots closed simultaneously amid a scarcity of developers willing to bid, attributed to soaring interest rates and escalating economic and political tensions.
Shifting our focus to the Lorong 1 Toa Payoh site, an area that has remained devoid of new condo launches for seven years, the highest bid stands at 968 million, equating to approximately $1360 psf ppr. This marks a significant surge compared to the last condo launch in Toa Payoh, Gem Residences, back in 2016, which had a considerably lower $755 psf ppr—nearly 80% less than the current rate for the new development.
In the vicinity of the emerging Lorong 1 Toa Payoh site, three distinctive condominiums make their mark. Gem Residences, the most recent addition, obtained its TOP in 2020, closely followed by Trevista, which achieved its TOP in 2012, and Oleander Towers, strategically located closest to Toa Payoh MRT, securing its TOP in 1988. Notably, the upcoming development boasts unparalleled proximity to Braddell MRT station, a mere one stop away from Bishan MRT, accessible within a 5-minute walk. Both Gem Residences and Trevista, positioned within 500m of this new site, have demonstrated favorable price appreciation over the years.
In the current market landscape, Gem Residences commands prices approaching $1850 psf, while Trevista follows closely, nearing $1750 psf. This analytical perspective underscores the strategic location of the new development, accentuating its potential for capital growth and positioning it as a noteworthy player in the evolving real estate dynamics of Toa Payoh.
Toa Payoh has emerged as a hub for million-dollar HDB transactions, potentially indicating a lucrative demand for the forthcoming development in Lorong 1. A scrutiny of caveat data at Gem Residences reveals a noteworthy trend—over 50% of buyers originated from HDB addresses, underscoring a robust demand from individuals looking to elevate their living standards within this community.
Adding to the appeal, numerous flats that have recently surpassed their Minimum Occupancy Period (MOP) are now commanding prices exceeding $800,000. This phenomenon signifies a significant cohort of potential HDB upgraders who might be inclined to choose this upcoming development as their residence within this highly sought-after housing estate. The confluence of high-value HDB transactions and the desirable locale suggests a promising market for the new development in Lorong 1.
So what might be the indicative psf for this new site?
At $1,360 psf ppr, the new Lorong 1 Toa Payoh site is on par with Grand Dunman, which registered at $1350.50 psf ppr. Both locations fall within the RCR and enjoy close proximity to MRT stations. Presently, Grand Dunman commands an initial psf ranging from $2,500 to a peak of $2,800. Considering this benchmark, it is reasonable to anticipate that the psf for the Lorong 1 site will not dip below $2,500.
Factoring in elevated construction costs, the new GFA harmonization calculation, and the site’s strategic location, which generates high demand for private condominiums, the estimated psf is likely to fall within the range of $2,600 to $2,800.
This projection aligns with the prevailing market trends and the premium positioning of the Lorong 1 Toa Payoh development in the current real estate landscape.
