The Urban Redevelopment Authority released three residential sites on Thursday, June 13, for the first half 2024 Government Land Sales (GLS) program.
Three sites are located on Dairy Farm Walk (Dairy Farm Walk), Tengah Garden Avenue (Tengah Garden Avenue) and Bayshore Road.
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The three parcels of land are leased for 99 years and will yield 1,915 units.
On the list of confirmed plots are Dairy Farm Walk, Tengah Garden Avenue and Bayshore Road.
Sites on the confirmed list are released according to schedule, regardless of demand. Sites on the reserve list are, however, only put out to tender when a developer submits an acceptable offer to the government.
The Dairy farm walk and Bayshore Road parcels are both zoned as residential, while the Tengah Garden Avenue parcel is residential with a commercial zoning on the first floor.
Property analysts believe that land prices will be lower compared to previous sales in the area.
He said that the increase in land availability is a result of the government increasing the supply, and that developers are faced with “challenging conditions” such as high construction costs, rising interest rates, and harmonisation on gross floor area.
According to the new definition of harmonised GFA that is standardised, all strata will be required to be included in GFA. This is controlled by the site’s master plan plot ratio.
The plot of Dairy Farm Walk is 21,881.8 sq m and could produce 540 apartments. The 45,952 square metre maximum gross floor area is capped at four to six stories in the low-rise zones and 75 to85 m for the medium-rise zones.
Market watchers have also noticed that Dairy Farm Walk is becoming a residential enclave. Recently, new condominiums like The Botany at Dairy Farm or Dairy Farm Residences were launched in the area.
Researchers said that the site was “well-positioned” to attract a large number of HDB residents from the Bukit Panjang estate and Choa Chu Kang Estate who are interested in upgrading their homes.
He said that The Botany at Dairy Farm is the only development within the area, which presents an opportunity for developers as potential buyers who missed the earlier projects may turn their attention to GLS’s new development.
The developer is more conservative, and there are other sites that are attractive for tender.
Property researchers predict that the Dairy Farm Walk could receive three bids. The top bid is expected to be between S$800-S$850 per plot ratio per square foot (psfppr).
Some people believe that the Dairy farm Walk plot launch “isn’t as exciting” because some private residential developments have already launched in the region.
Developers would take into consideration the amount of unsold stock at nearby launches when bidding on the site.
According to URA Realis caveat information, The Botany at Dairy farm, which went on the market in March last year, has sold 90% of its 386 apartments at an average price of S$2,050 per square foot.
Analysts predict that the site tender will draw between one and two bidders with a maximum bid of S$880 – S$950 per square foot per person.
Other analysts also expect two to three bidders with the highest bid between S$900 – S$1,000 per square foot per person.
The Dairy Walk project is expected to be completed in 60 months.
The URA estimates that this land parcel could yield up to 860 residential units. It has a building height limit of 60 meters.
Some estimates suggest that there will only be three bidders for the site, with the highest bid between S$800 to S$850 per square foot.
Many top real estate executives expect that developers will be interested in the site due to the rising property values and improved transportation system.
The site is expected to receive two or three bids at a price between S$900 to S$980 per square foot ppr.
Many warn that the Tengah region is still relatively unknown to homebuyers despite its “alluring potential”.
Developers will need to balance the demand drivers, supply from new developments around them and a desire for a first mover advantage.
According to other opinions, the plot will receive two to four offers. The highest bids are expected to range from S$850 psf to S$950 per square foot.
The project completion period for the site is 66 months. This depends on when the first regulatory approval application will be submitted, which must be before December 31, 2025.
Bayshore Road, a 10,493.9 sq. m. site, could yield up to 515 apartments. The GFA is 44,075 square meters and the maximum building height is 101-105 metres.
The Bayshore Road development will be the estate’s first private project, following the launch of the two first build-to order projects in October.
The site is also close to the Bayshore MRT Station and has direct access to Marina Bay, Central Business District, and Orchard Road.
This will attract buyers in the East, such as HDB upgraders and those who live in nearby landed houses that want to downsize into a condominium without having to move too far.
The high demand for housing in the area is expected to prompt developers to sell this property.
Eight bidders were involved in the fierce bidding for the last GLS site in this area in January 2016. The site was awarded for S$858 per square foot per person.
The site may also see a bid between S$900 to S$950 per square foot per person.
Analysts do not expect that the site will be put up for sale anytime soon due to the upcoming launches of the programme H1 2024 GLS and the “ample supply” housing units.
If developers don’t apply, the site may be added to the list of confirmed sites in the second half.
URA stated that the most recent tender launch was the “highest” supply on a confirmed list for a GLS program since the H2 2013, GLS Programme.
In order to meet the demand, the GLS programme has increased the number of confirmed private housing units to 5,450 in H1 2020, up from 4,090 in H1 2030 and 5,160 in H2 2023.
The Dairy Walk and Tengah Gardens Avenue tenders will close on January 14, 2025 at 12pm.
