The Orie Record-Breaking Consortium Bid of $1,360 psf ppr Surpasses Competition in Toa Payoh’s Latest Tender
The consortium of CDL, Frasers Property, and Sekisui House has unveiled plans to build a residential complex comprising of two 40-story towers, which will offer about 800 units, if they successfully acquire the site. The proposed development, known as The Orie, is highly attractive due to its strategic location in a well-established residential neighborhood and limited availability of new developments in the vicinity.
Located in the mature estate of Toa Payoh, the 3.1-hectare site at Lorong 4 and Lorong 6 is zoned for residential development under the Government Land Sales (GLS) program. It has a maximum gross floor area of 612,317 square feet and is expected to yield around 735 residential units.
One of the main reasons for the record-breaking bid is the site’s strategic location in the heart of Toa Payoh. The estate is a well-established residential area with excellent connectivity and amenities, making it a highly desirable location for homebuyers. It is well-served by major expressways such as the Pan Island Expressway (PIE) and Central Expressway (CTE), providing easy access to other parts of the island. The future development will also be within walking distance to both Braddell and Toa Payoh MRT stations, providing residents with seamless connectivity to the rest of Singapore.
The recent tender for a new residential development in Toa Payoh has caused quite a stir in the property market, with a record-breaking bid by a consortium led by Orie Group. The bid of $1,360 per square foot per plot ratio (psf ppr) for the 99-year leasehold site surpasses all the other competing bids and has set a new benchmark for land prices in the area.
In terms of amenities, the site is surrounded by a plethora of popular shopping malls, such as Toa Payoh Mall, HDB Hub, and Junction 8. There are also numerous renowned schools, including Raffles Institution, St. Joseph’s Institution, and Pei Chun Public School, in the vicinity, making it an attractive location for families with school-going children.
Market analysts believe that the Orie consortium’s aggressive bid could be driven by their confidence in the current state of the property market. Despite the pandemic, the demand for private residential property has remained resilient, with prices continuing to rise. In the first quarter of 2021, private home prices increased by 3.3%, marking the fourth consecutive quarter of price growth. Analysts also predict that the upward trend in home prices is likely to continue in the coming months.
In conclusion, the record-breaking bid for the Toa Payoh residential site by the Orie consortium is a testament to the strong demand for private housing in the area. With its prime location, easy accessibility, and abundance of amenities, the upcoming development is expected to be a highly sought-after project by homebuyers. The bid also reflects the continued confidence of developers in the property market, despite the current economic uncertainties. As we await the launch of this exciting new development, it will be interesting to see how it will shape the landscape of Toa Payoh and set new benchmarks in the property market.
Moreover, the consortium may have also factored in the government’s recent announcement to raise the income ceiling for first-time HDB flat buyers. This will potentially benefit the future launch of this development in Toa Payoh, as it will attract a larger pool of eligible buyers who are looking to upgrade to private properties.
The Orie consortium’s bid is nearly 10% above the second-highest bid of $1,239 psf ppr by a joint venture between SingHaiyi Group and Haiyi Holdings. It is also significantly higher than the third-highest bid by Allgreen Properties at $1,173 psf ppr. The strong competition among developers for this site clearly reflects their confidence in the housing market and their bullish outlook for Toa Payoh.
Another factor that may have contributed to the high bid is the scarcity of land in Toa Payoh. With limited supply of private residential units in the area, the demand for new homes is expected to be strong. Furthermore, the GLS program only releases a limited number of sites in mature estates like Toa Payoh, making this tender even more attractive to developers.
The consortium’s proposal, with a price of $1,360 per square foot per plot ratio (psf ppr), notably exceeded the second-highest bid by 18%. The bid, which amounted to $819.99 million ($1,153 psf ppr), was submitted by Tanglin Land, a subsidiary of CapitaLand. This marks a noteworthy achievement, as it is the first tender for development in Toa Payoh since the nearby parcel was used to construct Gem Residences eight years ago.
In a press release, CDL confirmed that the joint venture has been divided equally between CDL, Frasers Property, and Sekisui House. The new partners have expressed excitement about acquiring the sought-after District 12 site and embarking on their first collaboration together. They are currently strategizing to utilize their collective knowledge and experience to create a distinguished development in the desirable Toa Payoh region. Leonard Tay, a renowned industry expert and Head of Research at Knight Frank Singapore, observed the competitiveness of the bidding process, despite a lower turnout compared to previous GLS tenders in 2022.
The tender for the site attracted a total of 15 bids, with the Orie consortium emerging as the highest bidder. The consortium comprises of Orie Development and Orie Construction, along with other prominent developers such as Keppel Land, City Developments Limited (CDL), and Hong Leong Holdings. The bid translates to a staggering land cost of approximately $1.132 billion, making it one of the most expensive GLS sites ever sold by the government.