SINGAPORE (EDGEPROP) - A residential site at Dunman Road has been launched for sale by public tender under the Confirmed List of the first half 2022 (1H2022) Government Land Sales (GLS) Programme. With a land area of 271,622 sq ft, the site can potentially yield about 1,040 residential units.

See also: New mixed-use GLS site at one-north launched for tender

It is much bigger than another recently sold GLS residential site just 800 m away at Jalan Tembusu and is “likely to fetch above $1 billion in land price, which could limit the pool of bidders, due to the higher risks involved”, says Ong Teck Hui, senior director of research & consultancy at JLL.

“The top bid could range between $1,250 and $1,350 psf ppr, translating to an overall bid of $1.188 billion to $1.284 billion. The potential selling price of the future development could range between $2,300 to $2,400 psf,” says Steven Tan, CEO of OrangeTee & Tie.

The site is notable for its accessibility and proximity to amenities including Singpost Centre and Kallang Wave Mall as well as popular schools such as Tanjong Katong Girls School and Broadrick Secondary School. “The Dunman Road site is very attractive as it is within minutes' walk to Dakota MRT station and a short drive to the Central Business District. It is just one train stop from Paya Lebar sub-regional centre,” says Lee Sze Teck, senior director (research) at Huttons Asia.

Wong Siew Ying, head of research and content at PropNex Realty, highlighted that despite its size, the site should still draw interest from developers due to the dwindling supply of unsold new homes in the market and the relatively limited supply of new private homes in the vicinity. “While this is a sizable project, we think developers may not be deterred by this and would likely draw confidence from the healthy sales at many mega projects in the last few years which have posted take-up rates of 90% and over,” she says. As of 4Q2021, there was a record low of 14,154 unsold units in the market.

The tender for the Dunman Road site will close at 12 noon on June 2. The tender closing for this site will be batched with the tender for the residential site at Pine Grove (Parcel A) which has been launched for sale in February 2022 under the Confirmed List of 1H2022 GLS Programme.

URA will also be removing a white site at Kampong Bugis from the 1H2022 Reserve List with immediate effect due to delays in the completion of soil remediation works at the site. It was originally put up for sale under the Reserve List of the 2H2019 GLS Programme.

Check out the latest listings near Dunman Road, Pine Grove, Dakota MRT station, Tanjong Katong Girls School, Broadrick Secondary School