The first government land tender (GLS) tender closed this year on 27 April 2021 – a plum site in the Farrer Park area attracting 10 bids with a record closing tender price.

The bid price showed developers’ hunger for replenishing their depleting land bank for residential properties.

The winning bid of $445.9m came from a joint venture between CDL and MCL Land. This translates to $1,120 per sq ft per plot ratio (psf ppr). It is also higher than that another GLS site in Perumal Road (currently known as Uptown @ Farrer) which was awarded at $1,001 psf ppr in 2017.

This site can be developed into a mixed use project comprising of 408 residential apartments of up to 23 storeys and commercial retail space – including an infant care and childcare centre – on the ground floor.

The new project may launch at between $1,900 and $2,100 psf.

The second and third government land tender (GLS) tender closed this year on 26 May 2021.

One of the two plots is slated for Executive Condominium (EC) development located at Tengah – a new estate in the western part of Singapore.

It attracted a record top bid of $400.32m for an EC site with 7 bidders. This translates to $603.17 per sq ft per plot ratio (psf ppr). The winning bid came from a joint venture between CDL and MCL Land. (Same as the Northumberland GLS).

This EC site can be developed into an estimated 620 units.

The previous top bid of $583 psf ppr was won by a partnership between CDL and TID for a Sumang Walk site (now known as Piermont Grand) in Punggol back In 2018.

The second plot, along Ang Mo Kio Avenue 1, opposite Bishan-Ang Mo Kio Park and near Mayflower MRT Station which will open this year and also in close proximity to various popular schools.

This site attracted a record top bid of $381.38m with 15 bidders. This translates to $1,117.75 per sq ft per plot ratio (psf ppr). The winning bid came from a joint venture between UOL Group, Singapore Land Group and Kheng Leong Group.

One thing to note is that the top bid is at the higher end of market expectations and this site could yield about 370 residential units.

Opinion:

We are probably seeing ECs reaching the maximum prices without compromising in the unit mix and unit sizes of the dwelling units. However, the gap between new ECs and new non-landed private property appears to start to widen again.

Home shoppers, investors and upgraders should do their homework carefully before committing. There are various considerations when deciding which to go for.

8778 8778 Benjamin Yeo
8363 2331 Glynis Tan