17 May 2024
GLS Commentary for Zion Road (Parcel A) & Upper Thomson Road (Parcel B)
Property Insight

The report on the tender results for Zion Road (Parcel A) and Upper Thomson Road (Parcel B) highlights significant insights into their respective real estate markets and development prospects within the Government Land Sales (GLS) programme.

Zion Road (Parcel A) Overview:

Zion Road (Parcel A) received a sole bid from CDL & Mitsui Fudosan at $1.11 billion, translating to $1,202 per square foot per plot ratio (psf ppr). This parcel is strategically placed within the Bukit Merah planning area and is part of a pilot program introducing a new category of serviced apartments with a minimum three-month stay requirement. This initiative aims to address the rental market's demand, particularly for those seeking longer-term accommodations.

The parcel's proximity to the 455-unit Rivière condominium, which was fully sold out, underscores the high market demand in the area. The lack of new project launches nearby further makes Zion Road (Parcel A) an attractive development opportunity. Positioned between Great World and Havelock MRT stations, its location ensures excellent connectivity, enhancing its appeal to developers.

Market trends in the Rest of Central Region (RCR), where this parcel is located, show signs of recovery with a modest increase in property prices. Given this backdrop, the expected launch prices for new properties on Zion Road (Parcel A) are projected between $3,000 and $3,300 psf.

Upper Thomson Road (Parcel B) Overview:

Upper Thomson Road (Parcel B) saw a bid of $779.56 million from GuocoLand and Intrepid Investments (a subsidiary of Hong Leong Holdings Limited), amounting to $905 psf ppr. Like Parcel A, Parcel B forms part of the GLS program in the emerging Springleaf Precinct and offers a first-mover advantage to its developer. Its strategic location near the Springleaf MRT station on the Thomson-East Coast Line (TEL) is pivotal, especially given the area's primary characteristic of landed housing.

The last non-landed GLS site awarded in the vicinity was at Chong Kuo Road in 2018, indicating a potential pent-up demand in the area. The success of recent developments in nearby Lentor also hints at a strong market appetite for new projects in emerging locales such as Springleaf Precinct. Expected launch prices for properties on Upper Thomson Road (Parcel B) are anticipated to be around $2,000 to $2,200 psf.

Both parcels present significant development opportunities, each with unique strategic advantages that cater to specific market needs. Zion Road (Parcel A) is poised to cater to the high demand for serviced apartments, while Upper Thomson Road (Parcel B) is set to capitalize on the scarcity of new launches in its area, offering a diversification in housing types. Developers are likely to find these parcels especially lucrative given their strategic locations, anticipated market demand, and the overall positive shifts in regional property market trends.

Click here for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

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Property Insight
28 Mar 2025
Retail Property Market 2025: Trends Shaping Investor Strategies

Singapore's retail landscape demonstrated resilience in 2024, underpinned by a sharp rebound in international visitor arrivals and strategic investor activity. Visitor arrivals surged by 21.5%, growing from 13.6 million in 2023 to 16.5 million in 2024, with strong contributions from Mainland China, Indonesia, and India. This growth was fueled by a robust calendar of high-profile events—including concerts by global artists like Taylor Swift, Ed Sheeran, and Coldplay, as well as the Formula 1 Singapore Grand Prix and Singapore Art Week—which bolstered tourism-related sectors like retail and hospitality.

Retail property transactions in 2024 moderated slightly, registering approximately 250 caveated transactions compared to 272 in 2023. Despite this moderation, District 7 (Middle Road/Golden Mile) emerged as the top-performing district with 52 transactions. This reflects investor confidence tied to the transformation of the Golden Mile Complex into The Golden Mile, integrating retail, office, and medical suites alongside the upcoming Aurea residential tower. Districts 14 (Geylang, Eunos) and 9 (Orchard, River Valley) followed with 35 and 32 transactions, respectively, underscoring demand for strategically located and historically stable commercial zones.

From a project perspective, Parklane Shopping Mall led with 12 transacted retail units, indicating sustained interest in older, strata-titled developments with flexible configurations. Far East Plaza and Sim Lim Square also recorded strong activity, each with 10 units transacted, appealing to niche businesses and tourist-centric trades.

Notably, City Developments Limited’s acquisition of Delfi Orchard for S$439 million highlighted institutional interest in Orchard Road’s rejuvenation. Other high-value deals included transactions along Irrawaddy Road, North Bridge Road, and Beach Road—signaling a preference for prime, high-footfall locations.

The leasing market also improved, with total retail rental value rising by 2.7% year-on-year from $254.5 million in 2023 to $261.2 million in 2024. Median rentals held firm across multiple regions, with the North and North-East regions commanding premium rates. Fringe and Central Areas also experienced rental recovery, reflecting sustained demand in key retail corridors.

Looking ahead to 2025, Singapore's retail sector is poised for continued growth. The Singapore Tourism Board projects 17.0 to 18.5 million visitors, generating up to $30.5 billion in tourism receipts. This optimism is supported by new attractions such as Illumination’s Minion Land at Universal Studios Singapore and the Disney Adventure Cruise Line, both expected to draw significant regional traffic.

Retail will also benefit from a vibrant MICE calendar, bringing in high-spending business travelers. Experiential retail, the integration of physical and digital commerce, and evolving consumer expectations will continue to shape leasing and investment trends. While external risks such as geopolitical uncertainties and macroeconomic fluctuations persist, the sector remains anchored by Singapore’s strong fundamentals, diversified tourism base, and investor confidence in well-located assets.

Click

here

for the full report 

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

mohan@sri.com.sg

  

Property Insight
19 Mar 2025
GLS Tender Results: Bayshore Road Site Attracts Strong Developer Interest

Sing-Haiyi Garnet Pte. Ltd. secured the Bayshore Road residential site with a top bid of $658.9 million ($1,388 psf ppr), narrowly surpassing Sing Holdings Residential Pte. Ltd. by 0.8%. The tender attracted eight bidders, reflecting strong developer interest in this well-located site.

This marks the highest number of bidders for a non-EC GLS site since Jalan Tembusu in 2022, underscoring the continued demand for well-located private residential plots. The Bayshore precinct is undergoing major transformation, presenting an opportunity for developers to establish an early foothold in a future waterfront district.

The site’s strategic location enhances its appeal. It is close to Temasek Junior College, Temasek Secondary School, and the upcoming Bayshore MRT station on the Thomson-East Coast Line. Connectivity is further strengthened by the East Coast Parkway (ECP), providing easy access to the CBD and Changi Airport.

This land parcel is the first private residential site launched in the Bayshore neighbourhood, an area envisioned as a dynamic residential and community hub. The Urban Redevelopment Authority (URA) plans to integrate development with green spaces, places of worship, sports and recreational facilities, and educational institutions, fostering a holistic living environment.

The precinct's long-term potential likely contributed to the keen competition, with developers leveraging the First-Mover Advantage to set a benchmark for future developments. The Bayshore transformation began in October 2024 with the launch of two Build-To-Order (BTO) projects. This signals the evolution of Bayshore into a vibrant, well-integrated residential enclave with a blend of coastal living and urban convenience.

The site's proximity to a prestigious landed housing enclave provides an opportunity to attract potential upgraders. Homeowners in these exclusive estates may transition to new condominiums offering modern facilities, enhanced security, and a low-maintenance lifestyle. Additionally, a mature residential catchment could encourage existing homeowners to downsize or invest, further supporting demand.

Overall, this GLS tender reinforces Bayshore’s potential as a desirable residential district, offering connectivity, urban transformation, and investment potential. The strong bidding interest reflects developers’ confidence in the area's long-term value.

Click

here

for the full report 

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

mohan@sri.com.sg

  

Property Insight
18 Mar 2025
February 2025 New Launches Drive Strong Developer Sales

Developers sold a total of 1,575 units (excluding ECs) in February, maintaining strong market momentum from January’s 1,083 private residential units transacted. This marks the second consecutive month of robust sales, driven by sustained demand for newly launched projects. The key contributors to February’s performance were Elta and Parktown Residence, the only two new launches, which played a pivotal role in sustaining buyer interest and driving sales.

The Outside Central Region (OCR) was the primary driver of sales, accounting for 92.2% of total private residential units (excluding ECs) sold, significantly surpassing the Rest of Central Region (RCR) at 6.2% and the Core Central Region (CCR) at 1.6%. This highlights the ongoing demand for mass-market homes, particularly in well-connected suburban locations offering attractive price points. The influx of new launches provided fresh options, stimulating activity in this segment.

GLS Supply Pipeline Strengthens Market Resilience

While new home sales transactions remain substantial, they align with market demand, reflecting measured absorption of available supply. With more project launches expected and an increase in Government Land Sales (GLS) sites, the market maintains a steady pace.

Most recent project launches originated from GLS sites, as collective sale activity has moderated. 

Best-Selling Projects in February

The top-selling project was Parktown Residence, which transacted 1,041 units at a median price of $2,363 psf. The strong response is attributed to Tampines' first fully integrated development, which seamlessly blends thoughtfully designed residences with a retail mall, MRT connectivity, and bus interchange access, transforming it into a self-sustaining lifestyle hub.

The second best-selling project was Elta, with 326 units sold at a median price of $2,538 psf. Its success stems from pent-up demand, as it is the first new residential project in the Clementi planning area since 2020.

Market Outlook: Sustained Momentum in 1Q2025

March is expected to sustain market momentum, supported by Aurelle @ Tampines, Lentor Central Residences, and Aurea. These new projects will drive continued buyer interest, reinforcing market resilience.

With the transition into 2Q2025, upcoming launches—including Arina East Residences, Marina View Residences, Artisan 8, and One Marina Gardens—are set to energize the market, providing new opportunities for homebuyers and investors while ensuring stability.

Click

here

for the full report 

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

mohan@sri.com.sg

 

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