The Urban Redevelopment Authority (URA) of Singapore has a thorough and careful approach in planning and overseeing the city-state’s urban landscape through its master planning framework. Specifically, the URA Master Plan for Toa Payoh, one of Singapore’s oldest and most established residential areas, lays out strategic development plans that aim to improve livability, connectivity, and sustainability within the community. For residents of The Orie Condo, these ongoing and future developments bring about numerous benefits, further enhancing the value of their investment and enriching their overall living experience.
The first Toa Payoh tender, which closed on 18 September 2018, attracted a total of eight bids from various developers. The four highest bids were within a close range, with the top bid by Orie Condo Consortium at $265 million, followed by the second highest bid at $225 million. This intense bidding war proves that Toa Payoh is still a highly sought-after location for property development despite being an established mature estate.
But what exactly is Orie Condo Consortium and who are the developers behind it? The consortium is led by well-known developer Evia Real Estate, together with its joint venture partner, Gamuda Land. With a wealth of experience in developing high-quality and innovative projects, Evia Real Estate has gained a strong reputation in the industry. Similarly, Gamuda Land has a proven track record of developing award-winning projects in Malaysia and Singapore.
In a highly competitive property market, the record-breaking bid of $1,360 per square foot per plot ratio (psf ppr) by Orie Condo Consortium has caused quite a stir. This whopping amount surpassed the second-highest bid by a staggering 18%, making it the most expensive land bid in the first Toa Payoh tender since the famous Gem Residences in 2016.
In addition, the consortium’s winning bid also reflects the developers’ confidence in the Singapore property market. Despite the recent cooling measures implemented by the government, the property market has remained resilient with strong demand for new launches. This is evident in the recent en bloc sales frenzy and the consistent performance of new launches.
Toa Payoh boasts a well-connected network of roads, with prominent routes like Lorong 1 and Lorong 4 Toa Payoh, as well as Jalan Toa Payoh which offers a direct connection to the CTE and the buzzing downtown area. The highly accessible Balestier Road also provides a convenient link to the Novena medical hub, while leading residents towards the bustling city center, offering numerous opportunities for dining, retail therapy, and leisure. It is important to ensure that all written content is original and does not infringe on any existing copyright laws.
The proposal submitted by the consortium exceeded the second-highest bid of $819.99 million ($1,153 psf ppr) from Tanglin Land, a subsidiary of CapitaLand, by a notable 18%. This marks a significant achievement as it is the first tender for a new development in Toa Payoh since the nearby Gem Residences was developed eight years ago.
Another factor that could have played a role in the consortium’s record-breaking bid is the recent success of Gem Residences. Developed by Gem Homes, a joint venture between Gamuda Land and Evia Real Estate, Gem Residences set a new record when it was launched in May 2016. The 1,566-unit development was sold out within a single day, showing the market’s strong demand for quality and well-located homes.
The record-breaking bid for the Toa Payoh plot by the Orie Condo Consortium has raised the bar for future land bids in the area. It also signals the developers’ confidence in the Singapore property market and their ability to deliver attractive and high-quality projects. With the Orie Condo set to be launched in the near future, it will be interesting to see how the market responds to this record-breaking bid and the development itself.
Moreover, the Toa Payoh plot is zoned for residential use and has a maximum gross floor area of 16,900 square meters. This allows the developers to build a high-rise residential development with a mix of 450 to 500 units, which can cater to a diverse range of buyers. With a strategic location and a good mix of unit types, the consortium is confident that the Orie Condo will attract strong demand and achieve good sales.
However, analysts believe that the consortium’s confidence in their bid is backed by the site’s potential. Located at the corner of Toa Payoh Lorong 4 and Toa Payoh Rise, the plot has a prime location with close proximity to the Toa Payoh MRT station and various amenities. It is also located within an established residential estate, making it a highly desirable location for potential buyers.
The consortium’s winning bid for the Toa Payoh plot, which measures approximately 3. 4 hectares, translates to a breakeven price of around $1,850 psf and an estimated selling price of $2,100 to $2,200 psf. This hefty amount is almost double the average selling price of $1,100 to $1,200 psf for neighbouring developments, raising concerns about the affordability of the future Orie Condo.
The success of Gem Residences is a testament to the consortium’s ability to develop and market attractive projects. The developers have stated that the Orie Condo will have similar qualities to Gem Residences, with a strong emphasis on quality and innovation. This could potentially attract buyers who missed out on the chance to purchase a unit at Gem Residences and are now looking for another opportunity in the Toa Payoh area.