Urban Redevelopment Authority released three residential areas on Wednesday, June 13, for the first half 2024, under the Government Land Sales (GLS) program.
Three sites are situated on Dairy Farm Walk (Dairy Farm Walk), Tengah Garden Avenue (Tengah Garden Avenue) and Bayshore Road.
Three land parcels are on a 99-year lease, and could yield a total supply of 1,915 residential units.
The confirmed plots are Dairy Farm Walk, Tengah Garden Avenue and Bayshore Road.
Confirmed list sites are launched according to schedule regardless of demand. Sites listed on the reserve list in contrast are offered to tender only when a developer makes an offer acceptable to the government.
The Dairy farm walk and Bayshore Road parcels are both designated as residential. However, the Tengah Garden Avenue parcel is residential with a commercial zoning at the top.
The prices for land are lower than the prices for previously offered sites in the region. This comes as the government is increasing land availability and developers have to deal with “challenging” circumstances, which include rising construction costs, high interest rates, and the harmonization of gross floor area (GFA)
With the new standardised definition of Harmonised GFA every strata area must be classified as GFA that is governed by the site’s Master Plan plot ratio.
The plot of Dairy Farm Walk is 21,881.8 sq m. It could be used to build 540 apartments. The 45,952 square metre maximum floor space is limited at a height of four to six stories in the low-rise zones. It is 75 to 85 m for medium-rise zones.
Market watchers also observed that the Dairy Farm Walk site is evolving into a residential enclave. Recent new condominiums like The Botany at Dairy Farm and Dairy Farm Residences launching in the vicinity.
The location is well-positioned to draw a significant number of HDB residents from the Bukit Panjang and Choa Chu Kang Estates who want to improve their homes.
The only development in the same region is The Botany at Dairy Farm, and added that this is a good opportunity for developers, since potential buyers who missed out on earlier projects may turn their attention to the upcoming GLS development.
This round is expected to be less in terms of competition because developers are becoming more cautious and there are many sites with attractive tenders available.
The Dairy Farm Walk is expected to receive three or more bids. The highest bid is between S$800 and S$850 per square foot per plot ratio.
On the other hand the plot launch of Dairy Farm Walk is not as exciting due to the fact that several private residential developments have already been launched in the area. Developers would take into account the supply of unsold units at nearby launches when bidding on the Dairy Farm Walk site.
The Botany at Dairy farm that was put on the market in March of last year it has sold 90% of its 386 apartments at an average that is more than S$2,000 per square foot. The most recent tender on the site is expected to draw one or two bids and a maximum bid of S$880 to S$950 per sq ft per.
Three bidders or more, with the highest bid of S$900 to S$1,000 psf per person.
The project completion period for the Dairy Farm Walk site is 60 months.
The URA estimates that this land parcel could produce up to 860 housing units. It is a building height limit of 60 meters.
Tengah Gardens Avenue, which is a mixed-use integrated property, is expected to draw three or less bidders. The highest bid may vary from S$800 to S$850 per square foot per ppr.
Developers are likely to be interested in the property due to the growing property value as well as the improved transportation infrastructure.
Site is expected to draw between S$900 and S$980 per square foot.
Tengah is a brand new location for many homebuyers, yet it has a lot of potential. Developers must balance demand drivers and supply influx from nearby developments with a potential first-mover advantage.
The highest bid price for the plot will vary from S$850 to S$950 per square foot.
The duration of completion for the site is approximately 66 months. It is contingent on the date when the first regulatory approval application is completed, which is prior to December 31, 2025.
Bayshore Road, a 10,493.9 square. m. site, could potentially yield up to 515 apartments. The GFA is 44.075 square meters and the maximum building height is between 101 and 105 meters.
The Bayshore Road site will be the first private development within the estate in keeping with the previous two Build-to-Order projects that will be launched 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. The property will draw buyers from east, including HDB upgraders and those who reside in nearby land homes that want to downsize into a condo unit without having to move far.
Developers are expected to put this site up for sale due to the demand for houses in the area. He added that the previous GLS award in the area took place in January 2016, and it was highly contested by eight bidders. The site was awarded at S$858 per square foot for ppr.
Sites can have a maximum bid of S$900-$950 for a square foot for each person.
The property is not likely to be put up for sale any time soon because of the upcoming launch of the H1 GLS program as well as the huge amount of housing units that are available. The site could be moved to the list of confirmed properties in the second half of the year if developers do not apply for it.
The latest tender launch has the largest supply on the confirmed list within a single GLS programme since the H2 2013 GLS programme. To meet rising demand, the government increased the confirmed list supply of private housing in the GLS programme to 5,450 units in H1 2024, after 4,090 units in the H1 2023 and 5,160 units in the H2 2023.
The Dairy Walk and Tengah Gardens Avenue tenders will be closed on January 14, 2025 at 12pm.