SINGAPORE – Two leasehold private residential sites in Dairy Farm Walk and Tengah Garden Avenue were released for sale via tender on June 13 under the first-half 2024 Government Land Sales (GLS) programme.
Both parcels are on the confirmed list, while a third plot in Bayshore Road on the reserve list has been made available for application.
Confirmed list sites are launched according to schedule regardless of demand, while sites on the reserve list are put up for tender only when a developer makes an offer acceptable to the Government.
The 25,456 sq m residential with commercial at first storey site in Tengah Garden Avenue – the first private residential site to be launched for tender in Tengah – can yield 860 units and 3,000 sq m of commercial space. The 21,881.8 sq m plot in Dairy Farm Walk is expected to yield 540 private residential homes. Both tenders will close on Jan 14, 2025.
As with recent land tenders, analysts expect the two confirmed list sites to see measured participation due to their large land size.
Land bids for these sites will likely be lower than previously sold sites in their vicinity, said Mr Lee Sze Teck, senior director of data analytics at property firm Huttons Asia.
He cited rising land supply and ongoing challenges including high construction costs, financing costs and new guidelines on the harmonisation of strata and gross floor areas – where units are sold based on liveable space – which may result in a loss of saleable area for developers.
But PropNex head of research and content Wong Siew Ying expects the Tengah Garden Avenue site to interest developers seeking a first-mover advantage in building the first private residential project in Tengah.
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