The Dairy Farm Walk site has been used by The Botany’s showroom (Image: Google)
Singapore’s Urban Redevelopment Authority on Thursday released three residential sites under the Government Land Sales programme, as the campaign to replenish the city-state’s housing supply kicks into high gear.
The sites at Dairy Farm Walk and Tengah Garden Avenue in western Singapore were launched for sale under the confirmed list and can respectively yield 540 and 860 homes, the URA said in a release. The site at Bayshore Road on the southeastern coast is available for application by developers under the reserve list and can potentially yield 515 housing units.
The tenders for the Dairy Farm Walk and Tengah Garden Avenue sites will close at noon on 14 January 2025. Local broker PropNex Realty judges Tengah Garden Avenue to be the more exciting of the two, given the site’s closer proximity to mass transit.
“We expect developers will be keen on the site — seeking to gain a first-move advantage by securing the first private residential site in Tengah,” said Wong Siew Ying, head of research and content at PropNex. “In addition, this site is situated next to the future Hong Kah MRT station on the upcoming Jurong Region Line, which further enhances its appeal as properties close to an MRT station tend to be well-received among homebuyers.”
Stocking Up on Dairy
The Dairy Farm Walk site, located at the intersection with Petir Road, lies five minutes by foot from Sim Lian Group’s under-development The Botany at Dairy Farm project. Sim Lian won the site in March 2022 for S$347 million (then $255 million), or S$980 per square foot of accommodation, at a tender that drew seven bids.
Wong Siew Ying, head of research and content at PropNex Realty
The Botany went on the market in March 2023 and has sold 90 percent of its 386 units at an average price of more than S$2,050 per square foot, PropNex said, citing government data.
The latest Dairy Farm Walk site, yielding 494,623 square feet (45,952 square metres) of gross floor area, could draw one or two bids with a top offer of S$435 million to S$470 million, translating to S$880-S$950 per square foot, according to Wong.
The Tengah Garden Avenue site is zoned for residential with commercial space of 32,292 square feet at the first storey, providing a maximum GFA of 822,018 square feet. The nearby Copen Grand executive condominium, a joint project of City Developments Ltd and Hongkong Land’s MCL Land, sold all of its 639 units within a month of its October 2022 launch at an average of S$1,300 per square foot.
PropNex sees the Tengah Garden Avenue site attracting two or three bids, with the top bid of S$740 million to S$806 million working out to S$900-S$980 per square foot.
The Dairy Farm Walk and Tengah Garden Avenue tenders form part of the 5,450 residential units to be made available via the GLS confirmed list for the first half of 2024, coming on the heels of last month’s release of two Queenstown sites.
Bayshore Shows Promise
The Bayshore Road site near the East Coast Parkway can yield up to 474,419 square feet of GFA. PropNex deems the site “very attractive”, with its location by the future Bayshore MRT station on the Thomson-East Coast Line and units potentially commanding sea views towards the East Coast Park beach.
Despite those qualities, the agency doesn’t anticipate the reserve-list site being triggered for sale any time soon, due to the pipeline of oncoming launches and ample supply of housing units offered in the GLS confirmed list for the first half.
“The site could well be moved to the confirmed list in the 2H 2024 GLS slate if developers do not apply for it,” Wong said.
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