On September 12, the Urban Redevelopment Authority (URA) released a residential site at Faber Walk in Clementi as part of the second half of the 2024 Government Land Sales (GLS) programme. The site, measuring 25,795.5 square meters, is expected to accommodate 400 residential units, with a cap of 403 to ensure traffic flow remains manageable. This land parcel, offered on the confirmed list, will be sold regardless of developer demand.
Analysts predict developers will approach the tender with caution, echoing recent trends where bids have been conservative due to market saturation. As private housing supply continues to increase, the demand for certain GLS sites may remain mixed. Developers are closely monitoring the market, especially given the significant number of projects already in the pipeline.
The Faber Walk site comes with a 99-year lease and a maximum gross floor area of 36,114 square meters. It is part of the 5,050 homes slated for release under the second half of the 2024 GLS programme, with the government maintaining a steady supply of residential units in response to current market and economic conditions.
Mixed Demand for Clementi Site
While the overall demand may be moderate, there are specific factors that make this site attractive to certain buyers. Mark Yip, CEO of Huttons Asia, believes there could be pent-up demand for private housing in the area, as this is the last plot available in the Faber Walk residential enclave. ERA’s CEO Marcus Chu also noted that demand may come from landed homeowners looking to downsize or multi-generational families seeking homes within the same development.
Despite its suburban location, the Faber Walk site is highly sought after due to its proximity to several educational institutions and the upcoming Jurong Lake District, which is poised to become a major business and lifestyle hub in Singapore.
Historically, the area has seen robust interest. The last major state-land site released in the vicinity was West Coast Vale, where the Whistler Grand condominium now sits. That project, launched in 2018, attracted six bids and was eventually sold at S$800 per square foot per plot ratio (psf ppr). The resale prices in the Faber Walk area have ranged between S$760,000 and S$2.6 million, with recent transactions reflecting a healthy interest in the region.
Cautious Bidding Expected
However, market observers expect only moderate interest in this new Clementi plot, predicting up to three bids with a top bid likely falling between S$750 and S$850 psf ppr. This caution mirrors recent tender exercises, such as the Margaret Drive site, which attracted just two bids despite its popularity among homebuyers.
Developers are weighing several factors, including the current supply glut and the availability of more attractive sites in Bayshore, Chuan Grove, and Chencharu, which are positioned in denser housing enclaves. The smaller scale and low-rise nature of the Faber Walk development may further limit its appeal to developers looking for higher-yield opportunities.
Conclusion
While developers may be cautious in their approach due to current market conditions, buyer sentiment remains positive. The property market, particularly in sought-after areas like Clementi Avenue 1, continues to attract interest. Given this optimistic outlook, and with the growing appeal of projects like Nava Grove and Pinetree Hill, the long-term trajectory for the property market in Singapore appears stable and promising. This could be a good time for homebuyers and investors to consider their options in these upcoming projects, as the market is likely to stabilize and rise over time.