Upper Thomson Road (Parcel A) GLS Tender Launch in June 2025: Commentary by ERA

  • By ERA Singapore
  • 2 mins read
  • 25 Jun 2025
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SINGAPORE, 24 June 2025The tender for the Government Land Sale (GLS) site at Upper Thomson Road (Parcel A) launched today on 24 June 2025. It is the most recent site to be launched in the area since an adjoining plot at Upper Thomson Road (Parcel B) was awarded to a joint venture comprising GuocoLand and Intrepid Investments on 16 April 2024.

With an estimated site area of 2.44ha, Upper Thomson Road (Parcel A) is projected to contain 595 units, and an estimated 2,000 sqm of commercial space. The tender for the site will close on 23 October 2025. 

Zero bids submitted during previous debut with long-stay serviced apartment (SA2) component

Marcus Chu, Chief Executive Officer, ERA Singapore said: “Upper Thomson Road (Parcel A) was previously launched as a pilot site for the long-stay serviced apartment (SA2) housing typology, but it saw no takers when its tender closed on 19 June 2024. Rolling back the SA2 component may boost interest in Upper Thomson Road (Parcel A) as developers are now relieved of the cost and complexity of implementing a new housing concept.”

Revision of SA2 component could spark interest, however bids likely to stay tempered

“Upper Thomson Road (Parcel A) has been re-launched as a mixed-use site, which will likely capture more developer interest. Being located beside Springleaf MRT Station, it could also appeal strongly to future buyers, as evidenced by the high take-up rates at projects in the nearby Lentor housing cluster.”

“However, developers will need to factor in higher consultancy fees and construction costs to meet biodiversity-sensitive design requirements for the site.”

“As one of the first two non-landed private residential plots in the Springleaf precinct, the site offers a clear first-mover advantage for future buyers.”

“Even so, developers might calibrate their bidding enthusiasm due to the current gap in amenities and school options in the Springleaf precinct, but this is expected to improve with time. The presence of two sizeable residential plots near the site, located on each side of Seletar Expressway, also points to future growth potential.”

“Competition posed by pipeline launches in neighbouring Lentor may also moderate bidder interest for the site. Though stocks at existing Lentor launches are depleting, the precinct could see a fresh injection of about 500 units following the successful tender of Lentor Gardens by Kingsford Group in April this year.”

“Developers are also likely to look at the performance of the adjacent Springleaf Residence, previously known as Upper Thomson Road (Parcel B), to guide their bidding strategy. If sales there are strong, developers may be more willing to bid competitively. Otherwise, bids may be moderated closer to the $905 psf ppr land price of Parcel B.”

Softening appetite for land acquisition due to escalating market headwinds

“Given the current geopolitical and economic climate, developers could encounter headwinds in the form of softer buyer demand. This could in turn lead to muted bidding activity.”

“Developers may also become more selective in their bids given the ample upcoming GLS choices. This targeted approach could see greater attention directed towards other promising 1H 2025 plots, such as Chencharu Close. Alternatively, developers may also hold off their bids in favour of 2H 2025 sites in the vicinity like Lentor Central.”

“Based on current market sentiments and its locational attributes, we can expect to see measured bidder response for Upper Thomson Road (Parcel A).”

For media enquiries, please contact:

Ning Peh, Senior Marketing Communications Manager, ERA Singapore

Email: ning@era.com.sg

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

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