On Thursday (Jun. 13), the Urban Redevelopment Authority (URA), released three residential lots for sale under the first phase of the Government Land Sales Programme (GLS).
The three sites include Dairy Farm Walk Tengah Garden Avenue, and Bayshore Road
Three land parcels can be leased out for 99 years, and each one could yield up to 1,915 residential apartments.
On the confirmed list are the plots located at Dairy Farm Walk Avenue and Tengah Garden Avenue, while Bayshore Road is on the reserve list.
The sites that are on the confirmed list will be launched on time, regardless of the demand. On the other hand sites on the reserved list will only be put out for tender if a developer offers a price acceptable to the Government.
The Dairy Farm Walk plot and the Bayshore Road plot are zoned for residential purposes, whereas the parcel on Tengah Garden Avenue has a residential zoning with commercial zoning at the first story.
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According to a property analyst, land bids are expected to be lower than those for sites previously sold in the neighborhood.
The government is increasing land supply while developers are facing “challenging”, conditions such as high costs of construction, high interest rates, or the harmonisation in gross floor area.
The new standardised definition for harmonised GFA will require all strata to be included, and this is controlled by the Master Plan plot ratio of each site.
The 21,881.8-square-metre plot in Dairy Farm Walk can yield 540 housing units. The plot has a gross floor space of 45,952 m2.
Market watchers noted that Dairy Farm Walk has been developing into a private residential area, with new condominiums being launched such as The Botany Dairy Farm Residences and Dairy Farm Residences.
The site, according to the researcher, is “well positioned to draw significant attention from a ready-pool” of HDB (Housing Development Board) residents who want to upgrade their homes in the Bukit panjang and Choa Chu Kang areas.
He pointed out that The Botany is the only project in the same area. This presents an excellent opportunity for developers since buyers who missed earlier projects could turn to the GLS new development.
He does not expect as many bids this time around due to the fact that developers are becoming more conservative and that there are currently other attractive sites for tender.
Most property analysts expect that Dairy Farm Walk will receive at least three bids. A top bid could be anywhere between S$800 to S$850 for each square foot and per plot ratio.
On the other side, some believe that the Dairy Walk Walk launch is “not as exciting”, because there are already some residential projects in the area.
In evaluating the bid, developers will consider the supply of recent launches that has not been sold.
The Botany at Dairyfarm, which was placed on the market back in March, sold 90 percent of its 386 unit at an average of S$2,050/psf.
Analysts expect the latest site to attract one or two bids. The top bid is expected to be between S$880 and S$950 psf.
Other analysts predict two to three buyers, with the highest price between S$900-S$1,000 psf per person.
The Dairy Walk Project is scheduled to be completed within 60 months.
The URA estimated that the land parcel at Tengah Garden Avenue could potentially yield 860 units of residential housing.
Although it is noted that mixed-use integrated sites like Tengah Garden Avenue are usually in high demand, some estimate that the site may only attract three bidders and that the top bid could range from S$800 psf to S$850 psf.
As a result of the improved transportation network and rising property prices in the area, many real estate executives are expecting developers to be interested in this site.
They expect two to three bids for the site, ranging between S$900 and S$980 each per square foot.
Many homebuyers are warned that, despite “alluring prospects”, Tengah is still a relatively unexplored area.
The developers would have to weigh the supply and demand from nearby new developments in order to gain a competitive advantage.
Some people on the ground expect two to four bids, with the highest price range ranging between S$850 and S$950 psf.
The site will complete its project in 66 month, provided the first application for regulatory approval is submitted before or on December 31, 2025.
Bayshore Road’s 10,493.9 square meter site could potentially yield 515 homes. The site has a GFA (gross floor area) of 44,075 m2 and can be built up to 105m.
The Bayshore Road will be the site of the first private development within the new estate. This is in line with two other build-to-order project that are scheduled to launch in October.
Moreover, the site has easy access to Marina Bay and the Central Business District.
It will appeal to buyers who are located in the east. These include HDB upgraders, or people living in nearby land homes that wish to downsize and move into a condo unit without moving too far.
Due to high demand in the area, it is expected that developers will trigger the sale of this site.
In January 2016, eight bidders competed for the GLS site. It was ultimately awarded at S$858psfppr.
The top bid for the site might be between S$900 – S$950.
Some analysts do not believe that the GLS H1 programme will trigger the sale of the site so soon. This is because there are upcoming launches, and an “ample” supply of housing units.
The site will be moved onto the confirmed list if no developers apply in the second part of the year.
URA has noted that this latest tender is the “highest availability” in a GLS programme, since H2 2013.
To meet demand, the GLS program has increased its confirmed list supply to 5,450 private housing units by H1 2024 from 4,090 units H1 2023, and 5,160 units H2 2023.
The Dairy Walk Avenue and Tengah garden Avenue tenders close at 12pm on 14th January 2025.
