SINGAPORE, 2 June 2022 – Mr Lam Chern Woon (蓝振文), Head of Research and Consulting at EDMUND TIE comments on GLS site tenders at Pine Grove and Dunman Road.
The tenders for the two GLS sites at Pine Grove Parcel A and Dunman Road closed today. Sing-Haiyi and a CDL-Hong Leong-TID consortium contested in the tenders for both sites.
The Pine Grove site attracted five bids, with the top bid submitted by an UOL entity. A whisker of just $800 separated the top two bids for Pine Grove, the lowest in the public tender history. At $1,318 psf ppr, the top bid came in within the top end of our expectations, although the number of bids was lower than expected given that the site was located in a serene enclave near prime District 10 and enjoys close proximity to a number of popular schools. Notwithstanding the site’s positive attributes, developers are understandably a tad more cautious given the sombre economic outlook and the wave of rising prices and interest rates eating into homebuyers’ affordability. There could also be some concern on competition should the neighbouring site Parcel B on the Reserve List be triggered and awarded.
The Dunman Road site attracted just two bids given the scale of the site and the associated development risk of incurring punitive ABSD taxes and accrued interest should the project not sell out within five years. The mounting economic headwinds is another chief factor for the muted response for the site. The top bid of $1,350 psf ppr by Sing-Haiyi Jade is within our expectations, considering its location in popular District 15 and proximity to the Dakota MRT station, schools and other amenities.
In general, the bidders can be characterised into one camp: they are making good traction on their current projects and are continually looking to build up their pipeline given the sustained confidence in the property market.
With the launch of AMO Residences and Watten Residences expected in the coming months, UOL was likely emboldened by the robust take-up rates at Piccadilly Grand and Liv@MB, and is opting to replenish its landbank. Take-up rates of over 70% have been recorded at its other existing projects. Allgreen is likely keen to expand the reach of their project offerings beyond their Bukit Timah Collection towards the Ulu Pandan enclave to entice potential buyers. Meanwhile, CEL is moving on from its Kopar at Newton project with over 70% sold, while preparing for new projects like the Peace Centre and Maxwell House redevelopments. CDL has enjoyed stellar success with its recent Piccadilly Grand launch and will be developing the GLS site at Jalan Tembusu while Sim Liam is also coming in fresh from winning the Dairy Farm Walk Tender with Treasure at Tampines fully sold.
We expect average selling prices of over $2,300 psf for both projects when launched.
For further information, please contact:
Seah Li Ching (Ms)
DID: +65 6393 2369