News: Subdued interest in two Government Land Sales sites

Sep 5, 2018

Aerial view of the sale site at Dairy Farm Road. (Photo: URA)

Interest in two Government Land Sales sites at Dairy Farm Road and Jalan Jurong Kechil was subdued after their tender exercises closed with five and three bids respectively.

This marked the first batch of GLS site tenders to close after the government introduced new property cooling measures in July 2018.

“The tender results reflect developers’ cautious stance in general, and for private housing sites in particular,” said JLL Singapore head of research and consultancy Tay Huey Ying.

This comes as the additional cooling measures “have a greater impact on demand for private homes”, she explained.

But while bidding activity was subdued, different site attributes contributed to different bidding strategies, said Desmond Sim, CBRE’s research head for Singapore and Southeast Asia.

He noted that the residential with commercial use on first storey site at Dairy Farm Road witnessed close competition as the winning margin between the top bid and the second highest bid was a mere 1.1 percent.

United Engineers’ UED Residential submitted the top bid of $368.8 million, while MCC Land (Singapore) and Greatview Investment submitted the second highest at $364.89 million.

Launched on 31 May, the 19,647.7 sq m site has a gross floor area of 41,261 sq m and a 99-year leasehold tenure.

Meanwhile, the winning margin for the 14,234.9 sq m site along Jalan Jurong Kechil was 31.3 percent.

COHL Singapore and CSC Land Group (Singapore) submitted the top bid of $215 million, while Hao Yuan Investment and Sim Lian Land submitted a $163.8 million and $130 million bid respectively.

“The lower price quantum for this site, as well as a unit yield of only 280 units, has emboldened the winning bidder to put a more generous bid to secure this land bank,” said Sim.

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Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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