Urban Redevelopment Authority released three residential sites on Thursday, June 13 for the first half of 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.
The three parcels of land are leased for 99 years and could yield 1 915 housing units.
The land plots in Dairy Farm Walk and Tengah Garden Avenue are on the list of confirmed properties, whereas the Bayshore Road site sits on the reserve list.
Confirmed list sites are put up for auction according to a schedule regardless of demand; sites that are on the reserve list however are offered for tender only when developers make an offer that is acceptable to the government.
Both the Dairy Farm Walk and Bayshore Road plots are zoned to be used for residential purposes, while the plot in Tengah Garden Avenue is zoned residential and commercial for the first storey.
Land bids are expected to be less than for the previously sold properties. This is because the government expands land supply and developers face “challenging” circumstances, which include rising construction costs, high interest rates, and the harmonisation of gross floor area (GFA)
Under the new standardised definition of harmonised GFA All strata areas must be classified as GFA that is governed by the site’s Master Plan plot ratio.
The 21,881.8 square meters (sq m) plot located at Dairy Farm Walk could yield 540 units. It can be used for a gross floor area of 45,952 sqm. The maximum building height is four to six storeys in the low-rise area and 75 to 85 metres in the medium-rise zone.
Market watchers have also noticed that Dairy Farm Walk is transforming into an residential enclave. Recently new condominiums, such as The Botany at Dairy Farm or Dairy Farm Residences were launched in the vicinity.
The site is well-positioned to attract significant interest from a large crowd of Housing and Development Board (HDB) residents of the Bukit Panjang and Choa Chu Kang estates who want to improve their homes.
The Botany located at Dairy Farm is the only project in the same location. Developers will profit from this opportunity, as potential buyers who were not interested in earlier projects might now turn to GLS. GLS development.
It is unlikely to see many bids for this round due to developers becoming more cautious and other attractive sites available for tender currently.
It is anticipated that the Dairy Farm Walk site to potentially receive around three bids. The highest bid between S$800-$850 per square foot for each plot ratio (psf ppr).
Dairy farm walks aren’t much more interesting than other private residential developments which have been announced nearby. Developers will take into account the inventory of units that are not sold at nearby launches when bidding for this plot.
The Botany at Dairy Farm is a property that was put on the market last March, has sold 90 per cent of the 386 units at an average unit price of more than S$2,050 per sq ft. The site tender will draw only two bids, with the highest price being S$880-$950 per square foot per.
There are two or three bidders with a highest bid price that ranges from S$900 to S$1,000 psf per person.
The Dairy Walk project is expected to be completed in 60 months.
The land parcel located at Tengah Garden Avenue spans 25,456 sq m, and has the maximum GFA of 76.368 sq m. This plot is estimated by the URA to potentially yield 860 housing units. Additionally, the maximum building in height of 60m.
Tengah Gardens Avenue, which is a mixed-use integrated property, is expected to attract three or fewer bidders. The highest bid may vary from S$800 to S$850 per square foot per ppr.
Developers are likely to be attracted by the area due to the rising property value as well as the improved transport infrastructure.
The site to attract two or three bids, which will be between S$900 and S$980 psf ppr.
Despite alluring possibilities and the appealing prospects, the Tengah area remains a relatively unfamiliar locale for homebuyers. Developers will need to balance the drivers of demand, as well as supply from new developments in the area and also gain advantages as the first to move.
The most expensive bid for the plot will range from S$850 to S$950 for each square foot.
The project’s completion time is 66 months. This is subject to the initial submission to the regulator for approval prior to or on the 31st of December, 2025.
Bayshore Road, a 10,493.9 sq. m. location, is likely to yield up to 515 apartments. It has an area of 44,075 square m and a maximum building height of 101-105 m. Its project completion period also stands at 60 months.
The Bayshore Road development will be the estate’s first project that is private following the announcement of two Build-to Order projects in October.
In addition, the location is located close to the Bayshore MRT station and directly accessible to Marina Bay, the Central Business District and Orchard Road. The property is expected to attract buyers from east, including HDB upgraders and those who live in nearby landed houses that are looking to downsize into a condo unit without having to move far.
Due to the high demand in the region, developers will trigger the sale of this property. He also noted that the previous GLS site awarded in the area was in January of 2016 and was fiercely contest by eight bidders. The final price was S$858 per square foot per meter.
The site could have a maximum bid between S$900 to S$950 ppr.
It is not expected that the property will be opened to sell so quickly due to the imminent launches and the abundance of housing units that are available through the H1 2024 GLS program. The site may be added to the list of confirmed properties during the second quarter of the year, provided that developers do not submit an application for it.
The GLS H2 2013 programme had the largest confirmed list supply of units in the most recent tender. In order to meet the demand the GLS program has expanded the confirmed list of private housing to 5,450 units by H1 2024. This is up from 4,090 units in H1 2020 and 5,160 by H2 2023.
The Dairy Walk and Tengah Gardens Avenue tenders will close on January 14th, 2025 at 12pm.