Press Release

Press Release

02 June 2022

Closing of land tenders at Pine Grove (Parcel A) and Dunman Road

The Urban Redevelopment Authority has closed the tenders for 2 residential sites, at Pine Grove (Parcel A) and Dunman Road. Demand for both sites was healthy with 5 bids received for the Pine Grove Parcel A Site, and 2 bids for the Dunman Road site. The sites were from the Confirmed List under the first half of the Government Land Sales (GLS) Programme in 2022.

The participation rates and bid prices indicate that developers remain generally positive about the outlook of Singapore’s property market although most are mindful of the macroeconomic uncertainties and rising construction costs. Genuine demand and limited supply will continue to prop up home prices.

PINE GROVE

The most recent comparable land sale in the vicinity is the GLS at Jalan Anak Bukit, which was awarded on 30 August 2021 with a winning bid of S$1.028 billion or S$989 psf ppr. The highest bid for the current Pine Grove site was S$1,318 psf ppr which translates to an expected selling price of between S$2,300 and S$2,400 psf when the project is launched.

Developers’ interest for this site remained strong despite future competition from the adjacent Pine Grove site which is currently on the reserve list. With no new large projects along the Ulu Pandan and Pine Grove area in the past decade, there may be strong pent-up demand for private homes in this area. The Pine Grove Parcel B may even be moved to the confirmed list since demand is strong for this plot.

Moreover, the large site area gives the developer more leeway to build additional facilities within the project. This project will be popular among families given its close proximity to educational institutions such as Henry Park Primary School, Pei Tong Primary School, Singapore Polytechnic, and School of Science and Technology, Singapore.

DUNMAN ROAD

The most recent comparable land sale is the GLS site at Jalan Tembusu, which was awarded on 26 January 2022 with a winning bid of S$768 million or S$1,302 psf ppr. The highest bid for this current site is S$1,350 psf ppr. Based on the bid price, we anticipate that the future selling price of this project could be between S$2,300 and S$2,400 psf.

Given the large price quantum and risks involved, fewer developers bided for this site. However, mega projects in the city fringe like Normanton Park sold well which may have boosted the two developers’ confidence that there is still demand in the market for large projects. The most recent launch in the vicinity was Liv @ MB which transacted at an average price of S$2,407 psf from 19 May 2022 to 22 May 2022, indicating healthy demand for private housing in the area.

Even though more projects may be launched in the vicinity like the Thiam Siew enbloc site and the Jalan Tembusu GLS site, the future project launch remains popular given the site is well connected via both private and public transport options, and is near ample amenities and recreational spots.