On June 13, the Urban Redevelopment Authority (URA) released detailed information about these three 99-year leasehold sites.
The site at Tengah Garden Avenue spans approximately 274,006 square feet (25,456 square meters) and is the first private residential site in the Tengah area. This plot allows for mixed-use residential and commercial development, with the ground floor designated for commercial space. It is adjacent to the future Hong Kah MRT station and close to the Anglo-Chinese School (Primary), which is set to move to the area by 2030.
Given the site's large area, requiring significant upfront capital investment and posing higher development risks, it is expected to attract buyers with incomes exceeding $16,000 who are ineligible to purchase Executive Condominiums (ECs) but wish to reside in Tengah. Analysts predict that the site will attract up to thPrivate housing lots, lot tenders, residential units, Government land sale schemesree bids, with the highest bid estimated between $740 million and $806 million, translating to a price of $900 to $980 per square foot based on the gross floor area.
The Dairy Farm Walk site covers approximately 235,534 square feet (21,882 square meters). Part of the land can be developed into low-rise buildings of four to six stories. Given its distance from MRT stations and the multiple projects launched in the area in recent years, developers might consider the unsold units nearby when deciding to bid. Consequently, this site's attractiveness is relatively low.
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It is expected to attract one to two bids, with the highest bid ranging between $435 million and $470 million, corresponding to a price of $880 to $950 per square foot based on the gross floor area. High-rise units facing north could offer unobstructed views of the Chestnut Avenue area.
The Bayshore Road site, covering approximately 112,955 square feet (14,939 square meters), is a reserve site available for "triggering" by developers. It can accommodate 515 units. Despite cautious sentiment among developers, the site's proximity to the MRT station and the Central Business District (CBD) makes it attractive to both residents and investors.
The last land sale in the vicinity was in 2016 for the Seaside Residences. Given the area's 27-year-old housing stock, there is significant pent-up demand. If triggered, the highest bid for this site is expected to be between $900 and $950 per square foot based on the gross floor area.
Analysts believe that with increased land supply, developers face challenges like high construction costs and interest rates, possibly resulting in lower bid prices compared to previously sold sites in the vicinity. The larger area and higher development risks of the Tengah Garden Avenue site may deter some developers, but its unique location and future potential could still attract those looking for a strategic foothold in the region.
The tender for the Dairy Farm Walk and Tengah Garden Avenue sites closes on January 14, 2025, at noon. This tender is expected to positively impact the market by providing more options for homebuyers and driving the development of the private residential market.
