The tender for a Government Land Sale (GLS) site at Tanjong Rhu closed today, and was one of the more closely watched District 15 land sales in recent years. This site is located near Katong Park and the Singapore Swimming Club, and benefits from the recent completion of the Katong Park MRT station (TEL) back in 2023.

When the tender closed at 12 noon, the site attracted five bids, with the top bid of $709.3 million submitted by CDL Constellation Pte. Ltd. and Bedrock Ventures Pte. Ltd. This translates to a land rate of about $1,455 psf per plot ratio (ppr).

Marcus Chu, CEO of ERA Singapore, noted that the land rate of $1,455 psf ppr is 8.7 per cent higher than the $1,338 psf ppr achieved at the Dorset Road site last year.

It also surpasses the $1,402 psf ppr achieved at Marina Gardens Lane in 2023 by 3.8 per cent, making this a new record land rate for a Rest of Central Region (RCR) GLS site. The tight 2.5 per cent gap between the top two bids also signalled significant interest in the site.

Meanwhile, Leonard Tay, Head of Research at Knight Frank Singapore, noted that while five bids is relatively modest, the top three bids all exceeded $1,400 psf.

Notably, the top bid of $1,455 psf is higher than land rates achieved by GLS sites in prime districts last year, including Holland Link in District 10, River Valley Green (Parcel B) in District 9, and Dunearn Road in District 11.

Based on the land rate achieved, he estimates that launch prices for the future development could start from around $2,900 psf, with average prices potentially ranging between $3,000 psf and $3,100 psf.

The Tanjong Rhu site was launched under the 2H 2025 Confirmed List, and is the first GLS residential plot in Tanjong Rhu since 1997.

Based on URA's tender documents, the site features:

• Site area of about 131,740 sq ft

• Maximum Gross Floor Area (GFA) of about 487,455 sq ft

• Gross Plot Ratio (GPR) of 3.7

• Estimated yield of roughly 520 to 530 residential units

• Tenure of 99 years

The GPR allows for building heights of up to around 95-100 metres, or about 30 storeys, subject to detailed height controls. This raises the possibility of unblocked waterfront views, depending on the eventual architecture and orientation; but it would be unusual for a developer not to leverage on this.

An overview of the Tanjong Rhu location

As there hasn't been a new project here in close to three decades, any development here could benefit from a combination of pent-up demand, coupled with a strong age differential versus nearby projects like The Waterside, Sanctuary Green, and Tanjong Ria.

The opening of the TEL line, and Katong Park MRT station, has solved longstanding accessibility issues in this area. Prior to this, condos in Tanjong Rhu were primarily for those who drive, as even bus services were limited. The Katong Park station not only provides a direct trip to Marina Bay, but it also better connects this area to the lifestyle hub of D15, which is the Katong area (Marine Parade MRT station).

The opening of the Singapore Sports Hub, and the nearby Kallang Wave Mall, has also introduced a significant nearby amenity to this area. Prior to this, residents often had to drive out to town or into the Katong stretch.

There was also a launch of Prime flats in this area in the February 2025 BTO exercise. HDB always accompanies the building of new enclaves with relevant amenities like coffee shops, convenience stores, clinics, etc., so this will also contribute more in the way of amenities within walking distance.

Justin Quek, Deputy Group CEO of Realion (OrangeTee & ETC) Group, noted that these BTO projects also had strong demand. At the February 2025 BTO launch of Tanjong Rhu Parc Front, there were 2,658 applicants for 464 four-room flats, translating to about 5.7 applicants per flat.

This is reflective of a location with strong fundamentals. In the longer run, these flats could provide a catchment area for future HDB upgraders — but bear in mind that Prime flats have a Minimum Occupation Period (MOP) of 10 years, so this is much further down the road. There's also some obvious appeal to Singapore Swimming Club members, as they'll have their club right next door.

The lack of nearby primary schools may concern some families. Dunman High is just across the road though, so the location may appeal more to families with children entering Secondary school.

What the tender outcome could mean going forward

The closing of the Tanjong Rhu GLS tender reflects on developer confidence in city-fringe, lifestyle-orientated sites. While these are never going to be cheap, developers have seen that last year's methods — building smaller to maintain a lower quantum, in pricey areas — worked even in prime districts.

How the eventual project is positioned, and where pricing eventually lands, will show if this approach remains sustainable and popular going forward.