The Urban Redevelopment Authority (URA) has just launched the tender for the Faber Walk GLS site in Clementi on September 12. This 99-year leasehold residential site, which is under the 2H2024 GLS Confirmed List programme, is expected to yield up to 400 housing units with a gross plot ratio of 1.4 and occupying about 277,660 sq ft.
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According to Mark Yip, CEO of Huttons Asia, this is the last plot of land available in the private residential enclave of Faber Walk. The previous GLS site in the area was sold in 2013 and developed into the 210-unit Waterfront @ Faber, completed in 2018. With this in mind, there may be considerable demand for this new project.
Marcus Chu, CEO of ERA Singapore, also believes that there may be potential pent-up demand for this project, especially from landed homeowners in the nearby Faber Hills Estate who may be looking to downsize or multi-generation families who want to live in the same development.
However, developers may be cautious about this site due to its less attractive location compared to other sites in the 2024 Confirmed List. Some examples of such sites include Bayshore, Chuan Grove, and Chencharu, which are located in more established housing enclaves. The Faber Walk site is bounded by the Ayer Rajah Expressway (AYE) to the south, Sungei Ulu Pandan to the north, and a landed housing enclave to the west. While the location may not be within walking distance of many amenities, it is strategically located near the AYE, offering easy access to the upcoming Jurong Lake District, NUS, and one-north.
“The project could appeal to homebuyers and investors as the site is not far from employment nodes in Jurong Lake District, the International Business Park, and industrial spaces in Pandan Loop,” says Wong Siew Ying, head of research and content at PropNex.
However, past GLS sites launched since June 2024 have seen muted responses at tenders, with only two to three bids received. As such, Chu expects a similar response for the Faber Walk site, with developers potentially submitting bids in the range of $950 psf per plot ratio (ppr) to $1,050 psf ppr. On the other hand, Yip expects up to three bidders with a top bid price of between $800 and $850 psf ppr.
Interested parties can submit their tenders for the site by 12pm on 19 November. The response to this tender will be closely watched, as it may have implications for the residential property market.