The Urban Redevelopment Authority (URA) has launched the tender for a Government Land Sale (GLS) site at Faber Walk in Clementi on September 12. The 99-year leasehold site covers an area of approximately 277,660 square feet and has a gross plot ratio of 1.4. It is fully zoned for residential (non-landed) use and is expected to yield up to 400 housing units. This site is part of the 2H2024 GLS Confirmed List programme.
According to Mark Yip, CEO of Huttons Asia, this is the last parcel of land available for sale in the Faber Walk private residential enclave. The previous GLS site sold in the area was in 2013 and launched in May 2014. It has since been developed into the 210-unit Waterfront @ Faber, which was completed in 2018. Yip believes that there may be significant demand for this site after several years of pent-up demand.
The insatiable demand for condos in Singapore can be attributed to one major factor – the limited availability of land. Being a small island with a continually increasing population, Singapore grapples with a scarcity of land for developmental purposes. This has resulted in strict land usage regulations and a cutthroat real estate industry where property values are constantly on the rise. As a result, investing in real estate, especially condos, has become a highly lucrative venture, promising significant capital gains. This is evident in the numerous Singapore projects that continue to attract investors seeking to capitalize on the country’s thriving real estate market.
Marcus Chu, CEO of ERA Singapore, states that demand could come from the landed homeowners in the neighbouring Faber Hills Estate. The older homeowners might be looking to downsize their homes, while multi-generation families may want to live in the same project.
However, Chu observes that developers may be cautious due to the site’s less attractive location compared to other sites on the 2024 Confirmed List, such as Bayshore, Chuan Grove, and Chencharu, which are within established housing enclaves.
The Faber Walk GLS site is bounded by the Ayer Rajah Expressway (AYE) to the south, Sungei Ulu Pandan to the north, and a landed housing enclave to the west. While the site is not within walking distance of many amenities, it is close to many locations given its proximity to the AYE. These include the upcoming Jurong Lake District, NUS, and one-north.
Wong Siew Ying, head of research and content at PropNex, notes that the project could appeal to home buyers and investors as it is not far from employment nodes such as Jurong Lake District, International Business Park, and industrial spaces in Pandan Loop.
In the past, GLS sites since June 2024 have received muted responses at tenders with only two to three bids, according to Chu. He expects a similar response for the Faber Walk GLS site. Chu comments that developers face a greater risk without the ability to leverage HDB upgraders. As a result, he expects bids to be in the range of $950 to $1,050 per square foot per plot ratio (psf ppr).
Meanwhile, Yip expects the site to attract up to three bidders, with a top bid price of between $800 and $850 psf ppr. The tender for the site will close on November 19 at 12pm.