The Government Land Sale (GLS) site at Faber Walk, designated for residential (non-landed) development, was awarded to GuocoLand (Singapore) Pte. Ltd., TID Residential Pte. Ltd., and Intrepid Investments Pte. Ltd. at $349.9 million, translating to $900 per square foot per plot ratio (psf ppr). This bid exceeded the second-highest by 8.9%, reflecting the developers' competitive positioning. 

The Faber Walk site has several advantages. The planned transformation of Clementi MRT station into a Cross Island Line (CRL) interchange will enhance accessibility. The upcoming completion of the CRL is expected to improve connectivity to key areas in Singapore, boosting the site's appeal among homebuyers and investors. The lack of new residential launches in the area, as seen with the sold-out projects Clavon and Ki Residences at Brookvale, presents an opportunity to meet market demand.

Resale activity in the Clementi planning area has risen significantly, with non-landed and landed property transactions increasing by 20.6% and 14.3%, respectively, from January to October 2024 compared to the same period in 2023. This trend suggests a growing pool of upgraders who may be drawn to future developments at Faber Walk. The site's proximity to commercial hubs like the International Business Park and JTC Summit makes it attractive to expatriates and professionals in high-tech and industrial sectors.

Additionally, Faber Walk benefits from its location near reputable schools, notably Nan Hua Primary School, which has seen high demand in recent years. Families prioritizing proximity to such institutions may find this site appealing, further driving demand for its residential units.

The Jurong Lake District's transformation into a vibrant commercial and residential hub is likely to further increase interest in western Singapore. Improved infrastructure and business developments in the region will enhance convenience and connectivity, appealing to residents seeking work-life balance near major employment centers.

The site is projected to launch at competitive prices of $2,100 to $2,300 psf. Although future competition may arise from developments like The Elta at Clementi Avenue 1, the staggered launch timelines are expected to reduce direct competition.

The Faber Walk site is well-positioned to cater to a diverse demographic, including young families, professionals, and upgraders, offering a balance of exclusivity and value. Its strategic location, combined with improving infrastructure and market demand, presents an opportunity for developers to deliver a compelling residential development.

Click here for the full report 

Prepared By: 

Mohan Sandrasegeran 

Head of Research & Data Analytics 

Email: mohan@sri.com.sg