See this question stackoverflow :
memory usage of grails application
and what i can say is based on
If memory is not a problem on your server then allocate a large amount of memory, such as 512M or more. Also use the server VM option. EG: (-server -Xms512M -Xmx512M). Usually it is better to set both min and max heap size to the same in server applications.
However, if you running on a virtual host with limited memory, Grails 1.0 RC1 has been tested on tomcat 6 with both -Xmx96M and -Xmx128M, it performed well with both settings. I've heard reports of it running on lesser configurations"
And , REST application memory requirement can be high according to the request and how complex query and results involved, And also how you managed to do the coding that you properly cleared out every session , object after use ? But , i guess for REST application one > 512 <= 1GB
of memory is good to start. And , use so tweaks for memory as well. it should be fine!