In summary, there are many compelling reasons to consider investing in a condo in Singapore. This type of property is in high demand, with a potential for capital appreciation and attractive rental yields. However, it is crucial to carefully consider crucial factors such as location, financing options, government regulations, and market conditions. By conducting thorough research and seeking guidance from professionals, investors can make well-informed decisions and maximize their returns in Singapore’s dynamic real estate market. Whether you are a local investor looking to diversify your portfolio or a foreign buyer seeking a stable and profitable investment, condos in Singapore, with new launches like New Condo Launches, offer a compelling opportunity for investors to thrive.
The tender for the Government Land Sale (GLS) site at Tengah Gardens Avenue attracted three bids before closing on Jan 14. The top bid of $675 million, or $821 psf per plot ratio (ppr), was submitted by a consortium led by Hong Leong.The 99-year leasehold site, which is zoned ‘Residential with Commercial at 1st storey’, measures approximately 273,906 sq ft and has a maximum gross floor area (GFA) of 821,720 sq ft. It is expected to yield around 860 residential units, according to URA. The site is located near the upcoming Hong Kah MRT Station on the Jurong Region Line (JRL), which is set to enhance connectivity in the area.AdvertisementThe Hong Leong-led consortium, which includes GuocoLand Singapore and CSC Land Group, plans to develop an 860-unit condominium on the site, taking advantage of the upcoming JRL to attract buyers. Loke Kee Yeu, general manager (Projects) at Hong Leong Holdings Limited, believes that the growing development of the new Tengah estate will make it an attractive location for prospective homebuyers.Read also: Government ramps up private housing supply; offers three EC sites on Confirmed ListAdvertisementThe site’s close proximity to the Hong Kah MRT Station and the upcoming Tengah Town Centre, as well as its direct route to the second CBD at Jurong Lake District, make it an ideal location for developers. The top bid of $821 psf ppr was only 0.73% higher than the second-place bid of $815 psf ppr, submitted by Chinese developer Kingsford Group. Local developer Sim Lian Group submitted the third and final bid of $812 psf ppr, creating a very tight bid price spread between the three bidders.Despite the increase in homebuyer activity towards the end of 2024, developers have remained cautious in their approach, according to Leonard Tay, head of research at Knight Frank Singapore. He also believes that developers may have chosen to focus on existing sites that are due to be launched in 2025 rather than bidding on the Tengah Gardens Avenue site.Read also: URA launches tenders for two GLS sites at Media CircleAdvertisementAccording to Mark Yip, CEO of Huttons Asia, developers may be trying to keep their bids reasonable to maintain an attractive selling price for potential buyers. He expects to see more joint bids from property developers for GLS sites this year as a way of diversifying risk. This could be a contributing factor to the lower number of bids that have been received for GLS tenders recently.Another reason for the low number of bids could be the current availability of GLS sites, according to Marcus Chu, CEO of ERA. With seven sites still open for tender and six more scheduled to be launched in the first half of 2025, developers may be taking a more measured approach and weighing their options amid moderated interest rates. However, interest in the Tengah Gardens Avenue site may have been affected by the existence of another nearby GLS site, notes Justin Quek, CEO of OrangeTee & Tie. He believes that some developers may be considering bidding on a different GLS site along Lakeside Drive and Lakeside MRT, which is scheduled to be launched in April 2025.The Tengah Gardens Avenue site is set to be the first private residential site (excluding Executive Condominiums) in the Tengah HDB township. The site was awarded to City Developments Ltd (CDL) and MCL Land for the development of Copen Grand, a 639-unit EC that was launched for sale in 2022 and sold out within a month. If the Tengah Gardens Avenue site is awarded at the top bid of $821 psf ppr, PropNex estimates that the average selling price of the new private condo could be around $2,000 psf. The site’s proximity to the future Anglo-Chinese School (Primary), which is set to become a co-ed school in 2030, could make it an attractive location for families with school-aged children, according to Ismail Gafoor, CEO of PropNex.