Press Release
31 Aug 2022
The government has just launched the land parcels at Bukit Timah Link and Hillview Rise. Please see our comments below for your consideration.
https://www.ura.gov.sg/Corporate/Media-Room/Media-Releases/pr22-31
The Urban Redevelopment Authority has launched the tenders for two Government Land Sales (GLS) sites at Bukit Timah Link and Hillview Rise under the second half of 2022 GLS Programme Confirmed List.
The Bukit Timah Link site has an area of 4,611.1m2 which can generate an estimated 160 units, while the Hillview Rise plot is 10,395.2m2 which can yield around 335 units.
As these two plots are smaller than the upcoming launches at Tampines Avenue 11 (5.07 ha and estimated 1,190 units) and Marina Garden Lane (1.23 ha and estimated 795 units), developers may be keener to acquire these two plots given the lower risks and costs involved. For the bigger plots at Tampines Avenue 11 and Marina Garden Lane, developers may need to form a joint venture to pool resources and share costs.
Amenities and connectivity
Both the Bukit Timah Link and Hillview Rise sites are well-located near an MRT station with ample amenities. The plot at Bukit Timah Link is near prestigious schools like Pei Hwa Presbyterian Primary School, and Methodist Girls’ School. It is also located near various malls and leisure amenities such as Beauty World Centre, Beauty World Plaza, Bukit Timah Shopping Centre and KAP Mall. As the site is situated next to Beauty World MRT, residents will enjoy quick access to CBD via the Downtown Line and other parts of the island via the Circle Line at Botanic Gardens. However, this plot is a small site with an irregular shape. It also faces the main road which may be dusty and noisy for residents.
For the Hillview Rise site, it is within walking distance to Hillview MRT. Residents can similarly travel to CBD via the Downtown line. The site is near amenities like HillV2, The Rail Mall, Hillview CC, Dairy Farm Nature Park and Bukit Timah Nature Reserve. There are many schools in the vicinity including Assumption English School, Bukit Panjang Primary School, CHIJ Our Lady Queen of Peace, and Fajar Secondary School.
Comparables
The most recent sales of a GLS site in the vicinity was a 99-year leasehold private housing site in Dairy Farm Walk in the Upper Bukit Timah area. The site was awarded on 11 March 2022 to a partnership between Sim Lian Land Pte Ltd and Sim Lian Development Pte Ltd at a tender price of S$347 million or S$980 per sq ft plot ratio (psf ppr).
An earlier plot at Jalan Anak Bukit was sold in August 2021 for $1.028 billion or S$989.4 psf ppr. This is a 3.22ha land parcel located at the junction of Upper Bukit Timah Road and Jalan Jurong Kechil, next to Beauty World MRT Station. This is a mixed commercial and residential site awarded to FE Landmark, FEC Residences Trustee and FEC Retail Trustee under a joint venture between Far East Organization and Sino Group.
As the lack of new home supply in the OCR is unlikely to be resolved anytime soon, demand is expected to be robust. Further, projects in the vicinity like Dairy Farm Residences, Mont Botanik Residences and Verdale have sold all or almost all of their units.
In the second quarter of this year, new condominiums at Dairy Farm Residences and Midwood, near the Hillview Rise plot are transacted at a median price of S$1,621 psf and S$1,679 psf respectively. Near the Bukit Timah Link plot, new condominiums at Mayfair Gardens and Mayfair Modern are transacted at a median price of S$2,077 psf and S$2,210 psf respectively over the same time period.
Expected bids and land price
We are expecting between 6 to 8 bidders for the Bukit Timah Link site at a land price of between S$1,200 to S$1,300 psf ppr with an eventual selling price of S$2,100 to S$2,200 psf.
For the Hillview Rise plot, we are expecting between 6 and 8 bidders at a bid price of S$950 to S$1,050 psf ppr and an eventual selling price of S$1,800 to S$1,900 psf.