The Upper Thomson Road (Parcel A) Site GLS: Key Details, Pricing Trends, and Future Outlook

Key Takeaways:

Introduction

The Upper Thomson Road (Parcel A) site is a piece of land in Singapore planned for a mix of homes, shops, and serviced apartments.
When it was offered to developers in June 2024, no one made a bid for it.
This might sound surprising, but there are reasons why developers stayed away.

As someone who has studied real estate for years, I have seen that different areas in Singapore offer unique advantages.
I remember visiting Upper Thomson and enjoying the calm surroundings, the greenery, and the local food spots.
The challenge here is that this site is untested for certain features, especially the long-stay serviced apartments, and developers usually prefer to invest in places that feel more predictable.

Site Specifications (What’s Planned)

Land Size: About 262,875 sq ft, roughly the size of a few football fields.
Lease Length: 99-year leasehold.
Units Planned:

• Up to 640 residential units (homes for people to live in)
• Around 100 long-stay serviced apartments, which are like hotel rooms designed for people staying many months
• 1,500 to 2,000 sqm of shops and restaurants, so that residents can buy groceries, dine, and run errands easily

Extra Requirements:

• At least 1,000 sqm for a childcare center, to help families with young kids.
• At least 4,700 sqm for long-stay serviced apartments, which is a decent amount of space.

An interesting point is the need for serviced apartments.
Not many sites in this area have tried this before, and developers might feel unsure about how well this idea will work.
From my experience, developers prefer projects they know will sell well.
Trying something new can feel risky, even if it might turn out great later on.

Design and Building Rules

Height Limits:

• Front of Site (Low-Rise Zone): Up to 5 storeys tall.
• Mid-Rise Zone: Up to 16 storeys.
• High-Rise Zone: Up to 90m high, which could be about 30 storeys tall.

The design rules mean that parts of the development will be taller, allowing for nice views and possibly a sense of openness.
At the same time, lower buildings near the road keep the street view comfortable and not too crowded.

Usage Rules

The first floor of the development must have places that people use often, like shops or cafes.
This encourages people to walk around and keeps the area lively and welcoming.

Green and Eco-Friendly:
Because the site is near the Central Catchment Nature Reserve, the design must respect the environment.
Developers need to think about biodiversity, which means helping local plants, animals, and insects live well near the new buildings.
This could mean special plants on rooftops or careful lighting choices that do not disturb wildlife.

Commercial Spaces:
There must be a supermarket of at least 1,000 sqm.
This ensures residents have easy access to groceries, a big plus for families.
Having visited similar developments, I know how much residents value having a supermarket downstairs.
It makes daily life simpler and saves time.

Why No Bids Were Received

Reasons Developers Stayed Away:

1. Untested Market for Long-Stay Serviced Apartments: Developers prefer known markets.
2. Not a Major Commercial Hub: The area is nice but not as lively as central locations.
3. Competition from Nearby Parcel B: Another site next door may feel easier to develop.
4. High Upfront Costs: Meeting design and eco-rules might be costly.
5. Quiet Location with Limited Amenities: While peaceful, it might feel less convenient to some buyers.

From what I’ve observed, developers usually want safe bets.
If they think a site is tricky or not sure to attract many buyers, they may avoid placing bids.
Even if I personally like the calm environment of Upper Thomson, developers must consider how easily they can sell or rent out the units.

What Could Happen Next

The site might appear again in the second half of 2024’s Government Land Sales (GLS) program.
The officials could change some rules, especially the long-stay serviced apartments part, to attract more interest.

If the requirements become more flexible or more appealing, developers might reconsider.
Adjusting the rules to allow fewer serviced apartments or reducing other costs could make the site more attractive.

Location Advantages of Upper Thomson Road (Parcel A)

Near Springleaf MRT:
Being close to an MRT station is a big plus.

• About 15 minutes by train to Woodlands Regional Centre
• Around 30 minutes to Orchard and Outram Park stations

With good MRT connections, residents can reach shopping areas, job centers, and dining hotspots in a reasonable time.

Springleaf Enclave:
This area is known for its eateries.
Having visited some of these local joints, I can say the food is often quite good and more relaxed than downtown spots.
There are also nature reserves nearby, which can be a nice weekend escape for people who enjoy walking in the forest or spotting wildlife.

Market Pricing Trends

In early 2024, private home prices in Singapore grew more slowly than before.
For example, in Q1 2024, prices rose by about 1.4%, which was the slowest growth since Q3 2021.

Estimated Growth for 2024:
Analysts think prices might grow about 4-6% by the end of the year.
This slower growth means buyers may not feel rushed to buy right now, which might also explain why developers are cautious.

Comparing Nearby Launches

Lentor Hills Residences: Launched at about $2,080 PSF.
Lentor Gardens (Expected Launch): About $2,156 PSF, slightly higher than Lentor Hills.

Upper Thomson might sit somewhere in this price range, but it’s not certain because the serviced apartment idea is new.
Buyers might need to see how developers price the units, given the site’s rules and location.
One plus is the direct MRT access, which can help raise the site’s value.

Value for Homebuyers

MRT Connectivity: A direct link to Springleaf MRT can save a lot of travel time.
Mixed-Use Convenience: Having shops, a supermarket, and a childcare center on-site means everyday life is easier.
Close to Nature: With parks and a nature reserve nearby, residents can enjoy a peaceful environment not found in more crowded districts.

Back when I lived near a nature reserve, I found that morning walks and fresh air improved my mood.
Buyers who appreciate greenery and a calmer lifestyle might see special value in this site.

Market Stability and Supply

Overall Supply:
New home sales are expected to be around 7,000-8,000 units in 2024.
From 2024-2028, about 6,789 units per year are expected, which is lower than before.
With fewer new homes coming up, buyers might have fewer choices in the long run, which can keep prices stable.

Stable Investment Outlook:
Investors today look for homes that will stay valuable over many years, not just short-term gains.
Good transport links and future business districts nearby can help keep rents stable.

Cautious Developer Approach

Developers may price new launches carefully.
They have to consider construction costs, new rules, and what buyers want.
Even if no one bid for this site now, it doesn’t mean it has no potential.
It might just need some adjustments to make it more appealing to both developers and buyers.

Personal Expert Insights

Having watched the property market for many years, I’ve seen that sometimes sites that don’t attract bids right away can become popular later if conditions change.
Adjusting rules about serviced apartments or adding more attractive features could make developers more comfortable.
If a developer creates a home that is well-designed, respects nature, and meets daily needs, it might win over buyers who prefer a quieter life, yet still want to be connected to the city.

It’s worth noting that some buyers place a high value on living near nature.
They might be willing to pay more for a unit that offers green views and a calm setting, even if it’s not next to a famous mall or top school.
In this sense, the Upper Thomson Road (Parcel A) site could find its niche among people who value a balanced lifestyle.

Conclusion

The Upper Thomson Road (Parcel A) site is an interesting case.
No developers wanted to buy it during the initial tender in June 2024.
Reasons include unfamiliarity with long-stay serviced apartments, competition from nearby projects, and cautious market sentiment.

Still, the site offers direct MRT access, a peaceful environment, and a nice mix of nature and local eateries.
If the rules are adjusted and conditions become friendlier, developers might show more interest in the future.
This could lead to homes that fit a unique lifestyle—one that values convenience, green spaces, and a slightly slower pace of life.

Frequently Asked Questions (FAQs)

1. Why did no developers bid for the Upper Thomson Road (Parcel A) site?
Developers felt uncertain about the long-stay serviced apartments and the site’s quieter location.
They also faced higher upfront costs and strong competition from nearby projects.

2. Will the site be offered for sale again?
Yes, it might be re-listed in the second half of 2024’s GLS program, possibly with changes to the serviced apartment requirements.

3. How close is the site to public transport?
It is near Springleaf MRT station.
Travel times include about 15 minutes to Woodlands Regional Centre and around 30 minutes to Orchard and Outram Park stations.

4. What kind of shops and facilities will be available?
At least a 1,000 sqm supermarket is required, plus space for a childcare center, and activity-generating uses like shops and restaurants on the first floor.

5. Are there any environmental rules the developers must follow?
Yes, due to the site’s closeness to the Central Catchment Nature Reserve, the design must be biodiversity-sensitive, which means helping protect local plants and animals.

6. How are private home prices performing in 2024?
Prices are growing more slowly in 2024, with a 1.4% increase in Q1 2024.
Full-year growth is expected at around 4-6%.

7. Is this a good place to invest?
It could be, if changes make it more appealing to developers.
Good MRT access and a peaceful environment may attract certain buyers and renters in the long run.

8. How many units will be built on the site?
Up to 640 residential units are planned, including about 100 long-stay serviced apartments.

9. Why include long-stay serviced apartments at all?
They might offer a different type of housing for people who need to stay for months, not just days.
But this idea is new in this area, which made developers cautious.

10. Could the serviced apartment requirement be changed?
Yes, the authorities may review this requirement to attract more interest from developers and make the project more viable.