URA launches Toa Payoh residential site for sale
A 99 yr leasehold residential land site in Lorong 1 Toa Payoh was put up for sale by the URA under the Government Land Sales (GLS) programme.
The plot of land measures 15,743sqft and has a maximum gross floor area of 66,121sqft. It can yield a potential of 775 residential units. This figure contributes to the 5160 new homes that the government has planned in the second half of 2023.
Analyst predicted pent up demand for private homes in Toa Payoh
The last government land sales in Toa Payoh was in 2015. This is the first time in 8 years that a new land sale reserved for a new launch condominium is available for sale to the developers.
In June 2015, the plot was sold for $755 per square foot per plot ratio. The plot was built into Gem Residence by a consortium of developers in May 2016. 50 percent of the 578units available were sold at $1425 per square on launch day. It was then fully sold by October 2019.
Mostly upgraders bought into Gem Residences
Propnex Realty head of research and content, Wong Siew Ying said that the data collected showed that half of the purchasers had a HDB address, indicating that there is high demand from upgraders in the Toa Payoh area.
Ms Wong also expected that developers would be cautious in bidding for the new plot which is just opposite to Gem Residences. Given the lukewarm response to recent new launches. Having said that she added that they would expect the interest for this site to be fairly decent adding to the fact that there has not been any new launches in the area since 2016.
She foresees that there could be 4 or 5 developers bidding for this plot. Topping at $783million to $854million or at a land rate of $1100psf ppr to $1200 psf ppr.
High resale price in Toa Payoh
Prices in the resale market for HDB in Toa Payoh has been yielding higher prices compare to other areas. This may in return support home owners who are looking to upgrade their homes in the same estate.
The locale will be attractive to families with children. There are popular schools surrounding the area such as Raffles Girls School (Secondary), CHIJ Primary Toa Payoh and CHIJ Secondary (Toa Payoh). Justin Quek deputy chief executive from Orange Tee and Tie highlighted.
Huttons Asia Senior District of data analytic, Lee Sze Teck also noted that The Peak @ Toa Payoh a DBSS development have been transacting over $1million while the 4 room flats sold once it reaches the Minimum Occupation Period have exceeded $800,000.
He added that there is a good pool of potential HDB upgraders who may want to continue to live in this popular HDB estate as it also very accessible to the city and plenty of amenities.
The future BTO in Toa Payoh may have stricter resale conditions
As the government reclassifies the Build to Order (BTO) terms and conditions for purchase and resale. Toa Payoh BTO HDB flats uay fall under the Prime or Plus categories and hence fuelling buyers to look into private residential homes in the area instead.
Prime and Plus BTO HDB flats kicks in from the second half of 2024 and will come with a 10 year minimum occupation period before the can be sold into the open market. Also a subsidy clawback will have to be returned to the HDB upon selling of these flats. There will also be and income ceiling for resale buyers for these flats.
The Toa Payoh residential land site tender will close at 12 noon on November 7 2023 together with 2 other sites in Clementi Avenue 1 and Pine Grove in Ulu Pandan.