The Urban Redevelopment Authority has released for public tender three residential sites under the government land sales programme 2024.
The three sites are Dairy Farm Walk Tengah Garden Avenue Bayshore Road.
All three land parcels will be leased on a 99 year lease, and they can provide a total of 1 915 residential units.
The Dairy Farm Walk site and Tengah Garden Avenue plot are confirmed, while Bayshore Road sits on a reserve list.
Sites are added to the confirmed list according to schedule, irrespective of demand. Sites placed on the reservation list, however, will only be offered for sale when an acceptable bid is received by the government.
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The Dairy Walk plots and Bayshore Road lots are zoned exclusively for residential use. Tengah Garden Avenue’s parcel, on the other hand, is zoned primarily for residential usage with a first-floor commercial zoning.
Property analysts believe that land sales will be at a lower level than previously sold sites nearby.
The increase in government land supplies is creating “challenging situations” for developers, including high building costs, interest rate and the harmonisation gross floor areas (GFA), according to Mr. Wallace.
All strata areas must be included under the standardised definition of GFA.
The plot of Dairy Farm Walk, which measures 21,881.8 square meters (sqm), could produce up to 540 units. The gross floor area for this plot is 45.952 sq. m. Maximum building heights are four to six floors in the low rise zone, and 75-85 meters in the mid-rise zone.
Market watchers noticed that Dairy Farm Walk was developing into a private enclave. New condominiums have been launched there, such as The Botany Dairy Farm Residences.
The researcher said the site would “attract significant interest” from HDB residents in Bukit Panjang Estate and Choa Chu Kang who are looking to upgrade their home.
He noted the fact that The Botany, a new GLS project, is the sole development in the same vicinity. This offers a great opportunity to developers because buyers who were unable to get into the previous projects will now be interested in the GLS.
He doesn’t expect to receive as many bids due to developers becoming more conservative.
Most property experts believe that Dairy Farm Walk may receive up to three bids. They expect the highest bid to be between S$800 and S$850/square foot/plot ratio (psf/ppr).
Some think that Dairy Farm Walk’s plot launch is not “as exciting” as it could be, given the fact that other private residential projects are already underway in the neighborhood.
Developers should consider recent launches in the area when bidding for a site.
The Botany at Dairyfarm was sold last March at a unit price of S$2,050 on average.
Analysts anticipate that the latest tender for a site will attract between one and two bidding parties, with an average bid of S$880-S$950 per sq ft ppr.
Some analysts expect a maximum bid of S$900 or S$1,000 per sq ft ppr.
The Dairy Walk is set to finish in 60 months.
This land parcel, located on Tengah Garden Avenue, is 25,456 sqm in size and has an estimated GFA of up to 76 368 sqm. It can accommodate 860 residential apartments and its maximum building height is 60 m.
The site is expected to attract no more than three bidders. The top bid will likely range between S$800-S$850 per square meter.
Many top real-estate executives expect developers to be attracted to the site given the increasing property values in the area and the improved transportation networks.
They are expecting the site to attract at least two bids and a total of between S$900-S$980 psf.
Many caution that despite Tengah’s “alluring” prospects, it remains an unexplored region for many homebuyers.
Developers need to find a balance between the new supply of housing and the drivers for demand.
According to local opinions, two to three bidders will compete for the plot. The price of the highest bid is between S$850 per square foot and S$950.
The site project completion is scheduled to take 66 months. However, the first regulatory submission must be made by December 31, 2019.
Bayshore Road site with 10,493.9 m2 can produce up to 515 units. The project has a total GFA of 4,475 sq m with a maximum height of 105 to 101 m.
The Bayshore Road property will be first of two private developments in the new development, which are due to launch in early October.
The site also has direct access from the Bayshore MRT to Marina Bay Central Business District Orchard Road and Orchard Road.
It will also attract buyers living in eastern Singapore, including HDB upgraders or those in nearby landed home who want to rightsize into a unit in a condominium building without having the need to relocate too far.
A high demand for houses in the region is expected to cause developers to put this site on the market.
The last GLS award in this area took place in January 2016 after a heated bidding war between eight bidders. It was eventually won at S$858psfppr.
Similarly, a site’s top bid could be between S$900 and S$950 for a psf per ppr.
Analysts will not anticipate the sale to occur so soon because of the launch schedule and “ample supplies” of housing offered under the H1 GLS programme.
If developers fail to apply, then the site might be moved on the list confirmed in the second year.
URA pointed out that the latest GLS tender launch has the “highest confirmed supply” since the GLS H2 programme in 2013.
In response to increased demand, government has increased confirmed list supply for private housing under the GLS Program to 5,450 unit in H1-2024, up from 4,090 unit in H1-2023, and 5,160 unit in H2-2023.
The Dairy Walk Walk and Tengah Flower Avenue sites tenders will end at 12 noon on the 14th of January 2025.
