While the Pine Grove (Parcel A) tender drew five proposals, the government land sale (GLS) site for Dunman Road saw simply two bids. The top quote of $1.284 billion or $1,350 psf per story proportion (psf ppr) came from SingHaiyi Team while the second area mosted likely to a consortium that included City Developments Ltd (CDL), Hong Leong Group and TID with a proposal of $1.067 billion ($ 1,122 psf ppr).
Today’s tender closing reveals that programmers continue to be mindful in getting residential sites, particularly larger ones, as seen in the drab tender engagement,” claims Ong Teck Hui, JLL elderly supervisor of research & consultancy. “This is regardless of the low unsold inventory and the current effective launches of Piccadilly Grand and Liv@MB and North Gaia.”
The leading proposal of $1,350 psf ppr was 20.3% higher than the reduced proposal at $1,122 psf ppr, which shows a restrained effort to complete by the reduced bidder. “This tender informs us that big billion-dollar websites are not in demand in the current market as they are high-risk in terms of the capital outlay as well as in marketing more than 1,000 devices within the five-year deadline to receive ABSD [additional customer’s stamp duty] remission,” includes Lee.
The percentage distinction in between these two quotes is the widest for a residential GLS tender because the tender for the GLS site at Jalan Jurong Kechil which closed in September 2018, says Nicholas Mak, period Realty Network head of research study & consultancy. In the Jalan Jurong Kechil GLS tender, the distinction in between the leading as well as second greatest bid was 31.3%, he includes.
The Dunman Road website could be developed into a new household project with about 1,040 units.
The price of $1,350 psf ppr sent by SingHaiyi is about 4% higher than the $1,302 psf ppr paid by CDL for the GLS site at Jalan Tembusu, likewise in Area 15, in January this year. The Jalan Tembusu site, which could produce about 640 units, had actually attracted eight proposals at the close of its tender.
There are 2 large growths in the pipeline for launch in District 15, namely the Jalan Tembusu GLS website as well as the property Thiam Siew Avenue website bought en bloc by a joint venture between Hoi Hup Realty as well as Sunway Dope last November. The site can potentially be developed into a new 820-unit condominium project.
According to Tricia Track, CBRE head of study for Southeast Asia, the low number of bids for the site despite its attractive locational characteristics mirrors “its plus size as well as competition” from the brand-new jobs at Jalan Tembusu and also Thiam Siew Avenue.
Song approximates that the brand-new domestic development at Dunman Road could be launched at $2,200 to $2,300 psf ppr.