The Urban Redevelopment Authority, or URA, released three residential properties for bidding on Thursday (Jun.13) under the GLS (Government Land Sales) Programme 2024.
The three locations are Dairy Farm Walk Tengah Garden Avenue Bayshore Road.
All three parcels have a 99-year term and can produce a total of 1,915 housing units.
The plots of land at Dairy Farm Walk Avenue, Tengah Garden Avenue is confirmed while the Bayshore Road site is reserved.
Sites that are confirmed are opened according to plan, regardless of whether or not there is demand. Sites in the reserve list on the other, are only open for bidding when the developer submits a bid acceptable to government.
Both Dairy Walk and Bayshore Road are zoned to residential use. Tengah Garden Avenue, however, is zoned residential but with a commercial zone on the ground floor.
An analyst predicts that the land auctions in the near future will be less expensive than previous sites sold nearby.
Developers face “challenging’ conditions including high construction cost, interest rates and harmonisation of Gross Floor Area (GFA), said he, as the government expands land supply.
In the new standardised definition, all strata area will have to include as GFA. This GFA is controlled through a site’s Master Plan plot percentage.
The plot measuring 21,881.8 square metres (sqm) at Dairy Farm Walk has the potential to yield 540 residential units. Its maximum gross area is 45,952 sqm.
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Market watchers also noted the Dairy Farm Walk area is developing into an enclave of private residences, with the recent launch of new condominiums in the region such as The Botany Dairy Farm Residences.
Researchers say the site “is well-positioned” to attract significant interest from HDB residents of the Bukitpanjang and Choa Chu Kang estates, who wish to upgrade.
He noted that The Botany At Dairy Farm was the only other project in the area. This is a good opportunity for the developers, as buyers who missed previous projects could now turn their attention towards the new GLS Development.
He expects to see fewer bids in this round, due to developers being more conservative. There are also other attractive sites currently available for tender.
Many property experts expect the Dairy Farm Walk to receive between three and four bids. This would mean that the top bid will be between S$800 – S$850 a square foot, per plot ratio.
Some believe the launch of the Dairy Walk Walk plots “is not exciting”, as some private residential development projects have already begun in the vicinity.
Developers will bid on a site based on the availability of the product.
The Botany at Dairy, which was first put on the marketplace in March of last year, has already sold 90 per cent (or 386) of its units at a price average of over S$2,050 for each unit.
Analysts believe that the most recent site tender is likely to receive one to two offers, with the highest bid being between S$880-S$950 psf.
Analysts expect two or three bidders and a bid price between S$900 to S$1,000 for a psf.
The Dairy Walk site is due to be completed by the end of 60 months.
This land parcel is located at Tengah Garden Avenue and measures 25,456 square meters. Its maximum GFA is 76,368 square metres.
Although mixed-use sites, such as Tengah Garden Avenue, are in high demand, it’s estimated that only three bidders will be interested, and that the top offer could be between S$800 and S$850/sf/ppr.
Many real estate executives believe that the property value in the region will rise as a result of an improved transport network.
The site will attract between S$900 – S$980 psf per ppr.
However, homebuyers should be aware that despite Tengah’s “alluring prospect”, it is still an unfamiliar area.
Developers must balance supply influx and demand drivers from surrounding new developments with gaining an advantage as the first movers.
According to some opinions on the ground, there will be two to four bidding wars over the plot. The highest bid could range between S$850-S$950 per sq ft per person.
The project completion time for this site is 66-months, subject to regulatory approval being received by the first date of submission. That would be December 31, 2020.
Bayshore Road is a site of 10,493.9 sqm that can yield 515 residential units. It has a gross floor area of 44.075 sqm, and its project completion period is 60 months.
The Bayshore Road site is the first private building in the new estate. It will follow the first two projects built-to-order that were launched in October.
The site is located near the Bayshore MRT and offers direct access to Marina Bay Central Business District or Orchard Road.
The unit will be attractive to buyers from the east. They include HDB upgraders or those who have landed properties nearby and want to upgrade into a condominium, without having relocating.
This site is likely to be put up for sale by developers due to the high demand of homes in this area.
The last GLS in the area to be awarded was in January 2016. Eight bidders vigorously competed. It was finally awarded at S$858.psf.ppr.
The site could also receive a top offer between S$900-S$950 psf.
Analysts may not have expected the site to go on sale so quickly, given the number of launches planned and the “ample availability” of housing units in the H1 GLS program.
If no developer applies, the site could move to the confirmed listing in the 2nd half of the calendar year.
URA reported that the recent tender launch represents the “highest quantity” of confirmed GLS programmes since the GLS H2 2013 programme.
In response to the growing demand for private housing, the GLS Programme has increased the list of confirmed supply from 4,090 to 5,450 units between H1-2023 and H2-2023.
The Dairy Walk site and Tengah Avenue site tenders will be closed at 12pm, January 14, 2025.